The Institution that settles disputes between citizens and the government is the Supreme Court of India. The Supreme Court is the highest judicial authority in the country and is responsible for interpreting the Constitution and enforcing the laws. Here are some reasons why the Supreme Court is the correct option:

Constitutional Powers:
The Supreme Court has been given the power to interpret the Constitution, which means it can decide whether a law or government action is constitutional or not. This power is essential for settling disputes between the citizens and the government.

Appellate Jurisdiction:
The Supreme Court has appellate jurisdiction over all courts in India. This means that any case can be appealed to the Supreme Court if the parties involved are not satisfied with the decision of the lower courts. This is important because it ensures that citizens have access to justice and can seek redressal for any grievances they may have with the government.

Enforcement Powers:
The Supreme Court has the power to enforce its judgments and orders. This means that if the government does not comply with a Supreme Court order, the Court can take action to ensure that the order is implemented. This power is crucial in ensuring that the government follows the rule of law.

Conclusion:
In conclusion, the Supreme Court of India is the institution that settles disputes between citizens and the government. It has been given the power to interpret the Constitution, has appellate jurisdiction over all courts in India, and can enforce its judgments and orders. These powers are essential in ensuring that citizens have access to justice and that the government follows the rule of law.