The correct answer is C. Om Prakash Chautala.
Bansi Lal was the Chief Minister of Haryana from 1979 to 1982 and again from 1991 to 1996. He did not reduce the tenure of Panchayats from 5 to 3 years.
Bhajan Lal was the Chief Minister of Haryana from 1987 to 1990 and again from 1996 to 1999. He did not reduce the tenure of Panchayats from 5 to 3 years.
Om Prakash Chautala was the Chief Minister of Haryana from 1999 to 2005. He reduced the tenure of Panchayats from 5 to 3 years in 2004.
Banarasi Das was a member of the Indian National Congress and served as the Chief Minister of Haryana from 1967 to 1968. He did not reduce the tenure of Panchayats from 5 to 3 years.