The correct answer is: A. Andhra Pradesh and Rajasthan.
The Panchayati Raj System was first implemented in Andhra Pradesh and Rajasthan in 1959. It was later extended to other states in India. The Panchayati Raj System is a system of local self-government in India. It is based on the principle of devolution of power to the people at the grassroots level. The Panchayati Raj System consists 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 System has been successful in promoting local development and in empowering the people at the grassroots level. It has also helped to improve the quality of life of the people in rural areas.
The other options are incorrect because they are not the first two states to implement the Panchayati Raj System.