What is the "dilemma" at the intra-State level mentioned in the first paragraph of the passage?
Explanation:
According to the first paragraph the inter-state and union-state layers are free of this dilemma. Therefore options 3 and 4 do not apply here. The dilemma is about how much autonomy should the Panchayat get. It is not about wresting power from Union (option 1) or taking it away and giving it to union. The dilemma is about power given to Panchayats to manage the ‘local’ affairs. That has been correctly pointed out in option 2.
Hence, the correct answer is option 2.
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