Option 1, Nagar Panchayat, is not an example of direct diplomacy. A Nagar Panchayat is a local authority that governs an urban area.

Option 2, District Panchayat, is also not an example of direct diplomacy. A District Panchayat is a local government body that administers rural areas.

Option 3, Gram Sabha, is the correct answer. A Gram Sabha is a village assembly where the eligible voters of a village directly participate in decision-making and governance. It is a form of direct democracy and is considered an example of direct diplomacy.

Option 4, Village Panchayat, is also not an example of direct diplomacy. A Village Panchayat is a local self-government institution at the village level, but it does not involve direct participation of eligible voters like a Gram Sabha does.

Therefore, the correct example of direct diplomacy from the given options is option 3, Gram Sabha.