Participatory budgeting aims to make the functioning of local governance institutions more transparent and accountable through various means. Option 1 states that it allows citizens to deliberate and negotiate over the distribution of public resources. This means that citizens can actively participate in discussions and debates about how resources should be allocated, ensuring that multiple perspectives are considered.

Option 2 mentions that participatory budgeting allows citizens to play a direct role in deciding how and where resources should be spent. This means that citizens have the power to directly influence the allocation of public funds, leading to a more democratic and inclusive decision-making process.

Option 3 suggests that participatory budgeting allows historically excluded citizens to have access to important decision-making venues. This means that underrepresented groups, who may have been marginalized in the past, are given the opportunity to participate in governance and have their voices heard.

Based on these explanations, option 4, which states that all three options are correct, is the correct answer. Participatory budgeting empowers citizens by enabling them to deliberate, decide, and have their voices represented in the allocation of public resources, ultimately leading to more transparency and accountability in local governance.