Local self-government can be best explained as an exercise in

1. A

   Federalism

   (a) Federalism. Federalism divides power between Union and States. Local bodies are a third tier, better captured as democratic decentralisation than as federalism itself. Not the key.

2. B

   Democratic decentralization

   (b) Democratic decentralisation. Panchayats and municipalities transfer democratic power downward to elected local governments. That is the best explanation and the official key.

3. C

   Administrative delegation

   (c) Administrative delegation. Delegation is a bureaucratic handing-down of tasks without necessarily electing a local government. Local self-government is more than that. Not the key.

4. D

   Direct democracy

   (d) Direct democracy. Gram sabhas have a direct element, but Indian local government is mainly representative. Direct democracy is not the best fit.

Summary. Official key is (b) democratic decentralisation. Local self-government means elected village and urban bodies that take decisions close to the people. The 73rd and 74th Amendments constitutionalised that third tier. Federalism names Union–State relations; administrative delegation can exist without elections; direct democracy is only a fragment (gram sabha). Decentralisation of democratic power is the precise idea.