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The Committee appointed in 1977 to review the working of the Panchayati Raj system was chaired by Ashok Mehta. The Panchayati Raj system is a decentralized form of government in rural areas in India, where power and decision-making authority are given to elected local bodies known as Panchayats.
Option 1, Balwant Rai Mehta, is not the correct answer. Though Balwant Rai Mehta is associated with the Panchayati Raj system, he was the chairperson of a previous committee that was appointed in 1957.
Option 3, K.N. Katju, is also not the correct answer. K.N. Katju was a judge of the Supreme Court of India, but he was not the chairperson of the committee appointed in 1977.
Option 4, P. Thyagaraja Chetti, is not the correct answer. P. Thyagaraja Chetti is not associated with the Panchayati Raj system or the committee appointed in 1977.
Therefore, the correct answer is option 2, Ashok Mehta. He chaired the committee appointed in 1977 to review the working of the Panchayati Raj system in India.