The correct answer is option 3. The provision of Legislative Council in the State Legislature does not state that one twelfth of all members shall be elected by electorates consisting of local bodies and authorities. This statement is incorrect.

Let`s dissect the other options to understand why they are correct or incorrect:

Option 1: The statement says that the States of Bihar and Telangana have Legislative Councils. This statement is correct. These two states do have Legislative Councils.

Option 2: The statement says that the total number of members in the Legislative Council of a State shall not exceed one third of the total number of members in the Legislative Assembly. This statement is correct. According to the provision, the number of members in the Legislative Council should not be more than one third of the number of members in the Legislative Assembly.

Option 4: The statement says that one twelfth of all members shall be elected by graduates residing in the State. This statement is correct. The provision states that a portion of the members in the Legislative Council should be elected by graduates living in the state.

Based on the above analysis, the correct answer is option 3, as the provision does not mention the election of members by electorates consisting of local bodies and authorities.