Option 1, Citizen’s grievances, is incorrect as the state government does have control over this through local bodies. They can address any grievances of the citizens at a local level.

Option 2, Financial matters, is also incorrect. State governments have direct control over the funding and budgetary allocations of local bodies.

Option 3, Legislation, is incorrect as well. State governments can pass laws and regulations that affect local bodies.

Option 4, Personnel matters, is the correct answer. Although states exert influence over local bodies, they typically do not have direct control over personnel matters like hiring and firing of employees, which are usually handled internally by the local bodies. Therefore, the state government does NOT have control over this area.