The correct option is B Establishment of Gram Panchayats, and providing them with necessary powers and authority to function as units of self-government.
Article 40 of the Constitution talks about establishing Gram Panchayats, and providing them with necessary powers and authority to function as units of self-government. To fulfill this, a third tier called the local government was established. In villages, it was called the Panchayati Raj. It was established in most of the states of India.