The correct answer is option 'B', the Balwantrai Mehta Committee.

Explanation:
The Balwantrai Mehta Committee, officially known as the Committee on Panchayati Raj Institutions, was formed in 1957 by the Government of India. The committee was chaired by Balwantrai Mehta, a prominent politician and social activist.

The committee was established with the objective of examining and making recommendations for the establishment of a democratic system of local self-government in rural areas of India. It aimed to strengthen participatory democracy at the grassroots level and empower rural communities.

The recommendations made by the Balwantrai Mehta Committee formed the basis for the Panchayati Raj System in India. Some of the key recommendations of the committee included:

1. Three-tier Structure: The committee proposed a three-tier structure for the Panchayati Raj System, consisting of village panchayats at the lowest level, followed by intermediate or block panchayats, and district panchayats at the highest level.

2. Gram Sabha: The committee recommended the establishment of a Gram Sabha, which would serve as a forum for all adults in the village to participate in decision-making processes. The Gram Sabha would elect representatives to the village panchayat.

3. Devolution of Powers: The committee emphasized the need for devolution of powers to the panchayats, including financial powers, administrative powers, and the power to plan and implement local development schemes.

4. Reservation of Seats: The committee recommended the reservation of seats for Scheduled Castes, Scheduled Tribes, and women in the panchayat elections to ensure social inclusivity and representation.

5. Financial Resources: The committee advocated for adequate financial resources to be allocated to the panchayats to enable them to carry out their functions effectively. It suggested a decentralized system of fund allocation, with a share of revenue from the state and central governments, as well as local resources.

The recommendations of the Balwantrai Mehta Committee were instrumental in the enactment of the Panchayati Raj Act of 1959, which provided a legal framework for the establishment and functioning of panchayats in India. Subsequently, several states adopted and implemented the Panchayati Raj System, leading to the decentralization of power and decision-making processes in rural areas.

The Balwant Rai Mehta Committee was a committee originally appointed by the Government of India on January 16, 1957 to examine the working of the Community Development Programme (1952,Oct 2nd) and the National Extension Service (1953 Oct 2nd) and to suggest measures for their better working.