The correct answer is (c) Rajasthan.
The Balwant Rai Mehta Committee was set up in 1957 to study the working of the Community Development Programme and to make recommendations for its improvement. The Committee recommended the establishment of Panchayati Raj institutions at the village, block, and district levels.
Rajasthan was the first state to set up Panchayati Raj institutions in accordance with the recommendations of the Balwant Rai Mehta Committee. The Panchayati Raj institutions in Rajasthan were established in 1959.
The Panchayati Raj institutions in Rajasthan are made up of three tiers: the village panchayat, the block panchayat, and the district panchayat. The village panchayat is the lowest tier of the Panchayati Raj system. It is responsible for the development of the village. The block panchayat is the intermediate tier of the Panchayati Raj system. It is responsible for the development of the block. The district panchayat is the highest tier of the Panchayati Raj system. It is responsible for the development of the district.
The Panchayati Raj institutions in Rajasthan have been successful in bringing about development at the village level. They have also been successful in empowering the people at the village level.
The other options are incorrect because they are not the first state to set up Panchayati Raj institutions in accordance with the recommendations of the Balwant Rai Mehta Committee.