The system of Local Self Government in the Panchayati Raj set up is a three-tier structure at the village, block, and district level. Option 1, a four-tier system at the village, block, district, and state level, is incorrect. Option 3, a two-tier system at the village and block level, is also incorrect. Option 4, a single-tier set up at the village level, is not the correct answer either. In the Panchayati Raj system, the village serves as the basic unit of administration, and it is further grouped into blocks or taluks. These blocks are then grouped under the district level. This three-tier structure ensures that there is decentralized self-governance at the local level, allowing for effective decision-making and implementation of policies.