Correct Option
The correct option is By all the panchayat members in that area..
Explanation
The Panchayati Raj system operates as a three-tier structure of local self-government: the Gram Panchayat at the village level, the Panchayat Samiti (Block or Mandal) at the intermediate level, and the Zilla Parishad at the district level. The composition and election of these bodies are central to the decentralization framework on Federalism.
Analysis
The election process as follows:
- Formation: A few Gram Panchayats are grouped together to form a Panchayat Samiti (also called a Block or Mandal).
- Election of Members: The members of this representative body are elected by all the panchayat members in that area. This implies that the elected members of the Gram Panchayats (Panches) constitute the electoral college for the Panchayat Samiti members in this context.
Note on Constitutional Provisions: While Article 243C of the Constitution mandates direct elections for seats at all three levels, the structural linkage where lower-tier members participate in the formation of the intermediate tier.
Key Takeaway
Federalism, members of the Panchayat Samiti (Block level) are elected by all the panchayat members of that area.