The correct answer is option 'D', which states that the object of the Butler Committee of 1927 was to improve the relationship between the Government of India and the Indian States. The committee, officially known as the Indian States Committee, was appointed by the British Government to examine and report on the relationship between the Indian states and the Central Government of India.

The Butler Committee was formed in response to growing demands for reforms in the relationship between the princely states and the British Government. The princely states were semi-autonomous entities within British India, and their relationship with the Central Government was often complex and characterized by a lack of clarity and coordination.

The committee was chaired by Richard Butler, who was a senior British civil servant. The committee consisted of both British and Indian members, including representatives from the princely states. The committee's main objective was to examine the existing relationship between the princely states and the Central Government and make recommendations for its improvement.

The committee's report, commonly known as the Butler Report, was published in 1928. It made several important recommendations aimed at improving the relationship between the princely states and the Central Government. Some of the key recommendations included:

1. Creation of a central agency: The committee recommended the establishment of a central agency to act as a mediator between the princely states and the Central Government. This agency would be responsible for resolving disputes, coordinating policies, and facilitating communication between the two entities.

2. Strengthening of the Chamber of Princes: The committee recommended the expansion and strengthening of the Chamber of Princes, which was an advisory body representing the princely states. The committee suggested that the chamber should have a greater role in the decision-making process and should be given more powers to protect the interests of the princely states.

3. Devolution of powers: The committee recommended the devolution of certain powers to the princely states, allowing them to have more control over their internal affairs. This would help in promoting a greater sense of autonomy and self-governance among the princely states.

4. Financial arrangements: The committee proposed the establishment of a financial relationship between the princely states and the Central Government that would be based on fair and equitable principles. This would ensure that the princely states receive a fair share of the resources and revenues generated within British India.

Overall, the Butler Committee aimed to address the grievances and concerns of the princely states and establish a more harmonious and cooperative relationship between them and the Central Government. The committee's recommendations played a significant role in shaping the subsequent reforms in the relationship between the princely states and the Central Government in India.