The correct answer is C) Decentralization of power.
The Panchayat Raj system in Karnataka is a system of local self-government that aims to promote decentralization of power. It is a three-tier system, with village panchayats at the lowest level, taluk panchayats at the middle level, and zilla panchayats at the highest level. The system was introduced in Karnataka in 1985, and it has been successful in promoting decentralization of power and local development.
Option A is incorrect because the Panchayat Raj system is not designed to promote urban development. In fact, the system has been criticized for not doing enough to address the needs of urban areas.
Option B is incorrect because the Panchayat Raj system is not designed to promote centralized authority. In fact, the system is designed to decentralize power and give local communities more control over their own affairs.
Option D is incorrect because the Panchayat Raj system is not designed to promote industrialization. In fact, the system has been criticized for not doing enough to promote economic development in rural areas.