Option 1 is correct because under the 73rd Amendment, Panchayats have the power to levy, collect and appropriate taxes, duties, tolls and fees as per provisions of the law made by the state legislature.
Option 3 is correct as Article 243E of the Indian Constitution states that every Panchayat shall continue for five years from the date on which its first meeting is held.
Option 4 is also correct, the same Article 243E specifies that in case of dissolution before the end of a full term, the freshly reconstituted Panchayat will continue only for the remainder of the period for which the dissolved Panchayat would have continued, had it not been so dissolved.
Answer 2 however is incorrect, as per Article 243F of the Indian Constitution, a person who is 21 years old can be a member of a Panchayat. Hence the minimum age limit mentioned is wrong. Therefore, answer 2 is the incorrect statement regarding the functioning of the Panchayats.