Consider the following statements : I. Panchayats at the intermediate level exist in all States. II. To be eligible to be a Member of a Panchayat at the intermediate level, a person should attain the age of thirty years. III. The Chief Minister of a State constitutes a commission to review the financial position of Panchayats at the intermediate levels and to make recommendations regarding the distribution of net proceeds of taxes and duties, leviable by the State, between the State and Panchayats at the intermediate level. Which of the statements given above are not correct?

Option (D) is correct because all three statements are factually incorrect: Article 243B exempts states with a population under 20 lakhs from forming intermediate panchayats, Article 243F sets the minimum age for membership at 21 years, and Article 243I mandates the Governor (not the Chief Minister) to constitute the State Finance Commission. Option (B) is the most tempting wrong choice for candidates who overlook the specific population exemption for the intermediate tier, mistakenly believing it is mandatory for every state. The core concept tested is the structural and functional provisions of Panchayati Raj Institutions under the 73rd Constitutional Amendment Act.