Option 1: Establish peace in the state - This option is not the most important function of the legislature. While it is crucial for the legislature to ensure peace in the state, it is not its primary function.

Option 2: Making laws - This is the correct answer. The most important function of the legislature is to make laws. The legislators study and debate different issues to develop laws that govern the state or country. Laws are crucial as they provide a framework for society to function, resolve disputes, promote justice, protect rights, and maintain order.

Option 3: Passing budget - While passing a budget is an essential function of the legislature, it is not the most important function. The budget outlines how funds are allocated, but the primary responsibility of the legislature is to make laws.

Option 4: Control on the Executive - While having control over the executive branch is an important function of the legislature, it is not the most important. Ensuring accountability and checks and balances on the executive is important, but making laws takes precedence.

In conclusion, the most important function of the legislature is making laws.