Correct option is C
· The Constitution originally provided for a two-tier system of government, the Union Government or the Central Government, representing the Union of India or centre power of government and therefore the State governments.
· Later, a third tier of federalism was also added within the form of Panchayats and Municipalities.
· Just like any federation, these different tiers enjoy separate jurisdiction.
· The Constitution 73rd Amendment Act, 1992 has added a new part IX consisting of 16 Articles and the Eleventh Schedule to the Constitution.
· The 73th Amendment envisages the Gram Sabha due to the foundation of the Panchayat Raj System to perform functions and powers entrusted to it by the State Legislatures.
· Therefore three tiers of government are: The federal, State and Local governments.