The correct answer is C. Balwant Rai Mehta Committee.
The Balwant Rai Mehta Committee was set up in 1957 to study the working of the Community Development Programme and the National Extension Service. The Committee recommended the establishment of Panchayati Raj institutions at the village, block, and district levels.
The Shah Commission was set up in 1977 to inquire into the excesses committed during the Emergency. The Nanavati Commission was set up in 1969 to inquire into the Gujarat riots. The Librahan Commission was set up in 1987 to inquire into the anti-Sikh riots.
The Balwant Rai Mehta Committee was the first committee to recommend the establishment of Panchayati Raj institutions. The Committee’s recommendations were accepted by the government and Panchayati Raj institutions were established in 1959. Panchayati Raj institutions are local self-government institutions that are responsible for planning and implementing development programmes at the village, block, and district levels.