(B) only i, ii and iv are correct.
Statement iii is incorrect — Panch and Sarpanch are directly elected by adult voters of the ward/village, not selected by the Election Commission.
The passage clearly states: "They are directly elected by all the adult population living in that ward or village." The State Election Commission only conducts elections; it does not select representatives. Statements i, ii, and iv are directly supported by the passage. This type of MCQ tests careful reading — watch for words like "selected" vs "elected."