(B) I, III and IV are correct.
Statement II is incorrect — only one-third (not two-third) seats are reserved for women in local government bodies.
Source: Decentralisation in India, Chapter 2
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The passage clearly states: "at least one-third of all positions are reserved for women" — not two-thirds. Statements I (mandatory regular elections), III (State Election Commission), and IV (seats reserved for SCs and STs) are all explicitly mentioned as measures taken in 1992. Option B is therefore correct.