Public Accounts Committee (India) ... The PAC is formed every year with a strength of not more than 22 members of which 15 are from Lok Sabha, the lower house of the Parliament, and 7 from Rajya Sabha, the upper house of the Parliament. The term of office of the members is one year.

The correct answer is option C) Public Accounts Committee.

Explanation:
The Public Accounts Committee (PAC) is a parliamentary committee in the Indian system of democracy that is chaired by a member of the Opposition Party. It is one of the most important committees in the Parliament of India and plays a crucial role in ensuring financial accountability and transparency in the government's functioning.

Role and Functions of the Public Accounts Committee:
1. Scrutinizing the Audit Reports: The PAC examines the audit reports of the Comptroller and Auditor General (CAG) of India, which highlight instances of financial irregularities, mismanagement, and non-compliance with rules and regulations in government departments.

2. Examining Government Expenditure: The committee examines the appropriation accounts of the government, which detail the expenditure of various ministries and departments. It ensures that the funds allocated by the Parliament are utilized for the intended purposes and in an efficient and effective manner.

3. Holding the Government Accountable: The PAC holds the government accountable for its financial decisions and actions. It examines the economy, efficiency, and effectiveness of government programs and policies and makes recommendations to improve their implementation.

4. Summoning Witnesses: The committee has the power to summon witnesses, including government officials, to provide evidence and answer questions related to financial matters. This allows the committee to gather information and insights to conduct a thorough examination of government expenditure.

5. Presenting Reports to Parliament: After conducting its examination, the PAC presents its reports to Parliament, highlighting its findings, observations, and recommendations. These reports are then discussed and debated in the Parliament, ensuring that the issues raised by the committee receive the attention of the legislators.

Importance of Opposition Party Chairing the PAC:
The PAC is traditionally chaired by a member of the Opposition Party in order to maintain its independence and ensure effective oversight of the government. This arrangement helps in preventing any undue influence or bias in the committee's functioning and allows for a robust scrutiny of the government's financial matters. The chairperson from the Opposition Party acts as a watchdog and ensures that the government is held accountable for its financial decisions and actions.

In conclusion, the Public Accounts Committee in the Indian system of democracy is chaired by a member of the Opposition Party. Its role in examining government expenditure, ensuring financial accountability, and holding the government accountable makes it a crucial parliamentary committee in India's democratic setup.