There might be multiple web.config files for a single 
project depending on the hierarchy of folders inside the 
root folder of the project, so for each folder we can use 
one web.config file

We can have any number of web.config files files in aproject
based on the modules present and if needed we can..

one and only one web.config files are there in 1 project.

Mr.Lalit Ratnawat you are wrong
we can have any no. of web.config files in a project

There may be more then one web config file in one 
application.But in different folders.And all web config 
files override the application root directory web.config 
file methods.

If you are asked this question in interview, then probably 
you should make it clear to the interviewer. 
As far as name webconfig is concerned, yes there can be 
multiple files with name web.config in a give project, as 
correctly stated by others it should be in different 
directories in the project. 
As far as feature/working is concerned, web config file ni 
sub directory is limited to some elements. It does not 
support all the elements supported by a web.config file.

A Web application can contain more than one Web.config 
file. The settings in a file apply to the directory in 
which it's located, and all child directories. Web.config 
files in child directories take precedence over the 
settings that are specified in parent directories

we can have more than 1 web.config in a project but in
different folders

Yes there can be multiple web.config files for a same 
application...............
                        NIRAJ (MICROSOFT TECHNOLOGIES)

yes there can be multiple web config file and Also it can  
be overwritten.

we can have more than no. of web.config files ok friends

yes we can have more than one web.config files in a project 
but in a different folder

There may be more then one web config file in one 
application.But in different folders.And all web config 
files override the application root directory web.config 
file methods.