The correct answer is option B) 52nd Amendment Act.

Explanation:
The disqualification of Members of Parliament (MPs) and Members of Legislative Assemblies (MLAs) is dealt with by the 52nd Amendment Act of the Indian Constitution. This amendment act inserted a new provision, i.e., the Tenth Schedule, which is also known as the Anti-Defection Law.

The Anti-Defection Law was introduced to curb the practice of defection by elected representatives, which was seen as a threat to the stability and integrity of the political system. Defection refers to the act of changing one's political party or allegiance from one party to another.

Key Provisions of the 52nd Amendment Act:
1. Disqualification of MPs and MLAs: The Tenth Schedule lays down the conditions under which an elected representative can be disqualified. These conditions include voluntarily giving up membership of a political party, voting or abstaining from voting contrary to party directions, and joining a different political party.

2. Decision by the Presiding Officer: The Speaker or Chairman of the Legislative Assembly or Council, commonly known as the Presiding Officer, has the power to decide on matters of disqualification under the Anti-Defection Law. If a question arises regarding the disqualification of a member, the Presiding Officer makes the decision after giving the member an opportunity to be heard.

3. Role of the Courts: The law also provides for a judicial review of the Presiding Officer's decision. Any aggrieved member can challenge the decision of the Presiding Officer in the High Court or the Supreme Court. The courts have the power to decide on the disqualification and to uphold or overturn the decision of the Presiding Officer.

Impact of the 52nd Amendment Act:
The Anti-Defection Law has had a significant impact on the functioning of political parties and the stability of governments. It has helped in reducing political defections and maintaining party discipline. However, it has also been criticized for giving excessive powers to the Presiding Officer and for being misused for political purposes.

Overall, the 52nd Amendment Act, through the introduction of the Tenth Schedule, has played a crucial role in addressing the issue of defection and ensuring the integrity of the political system.