The correct answer is (b), P.V. Narasimha Rao.
The 74th Constitutional Amendment Act was passed in 1992, during the tenure of P.V. Narasimha Rao as the Prime Minister of India. The amendment provides for a three-tier system of urban local government, namely, nagar panchayats (town councils), municipalities (city councils), and municipal corporations (metropolitan councils). It also provides for the devolution of powers and functions to these local bodies.
The other options are incorrect. Rajiv Gandhi was the Prime Minister of India from 1984 to 1989. Chandra Shekhar was the Prime Minister of India from 1990 to 1991. A.B. Vajpayee was the Prime Minister of India from 1998 to 2004.