Answer : 2. "Panchayati Raj system"
Explanation :

1. The Ministry of Panchayati Raj is a branch of the Government of India that looks after the ongoing process of decentralization and local governance in the states.

2. The Panchayati Raj system is the system of local self-government in rural India. Just as self-governance of urban areas is carried out through municipalities and suburban municipalities, similarly self-governance of rural areas is carried out through Panchayati Raj institutions.

3. There are three levels of Panchayati Raj institutions.

(1) Village level: Gram Panchayat

(2) Block level: Panchayat Samiti

(3) District level: District Council