The correct answer is option 3: "Under the Mahalwari system, the agricultural lands belonged to the Government." This statement is NOT correct.

The Mahalwari system was introduced during the British rule in India, but it did not involve the government owning the agricultural lands. Instead, the Mahalwari system was a land tenure system where the land was owned by individual village communities or groups of individuals. The Mahal (village) was considered as a unit of revenue administration, and the village communities or individuals within the village were responsible for the payment of land revenue.

Option 1 states that during the British rule in India, three categories of land tenure systems were introduced: Zamindari, Mahalwari, and Ryotwari. This is correct. The Zamindari system involved land being held by a single person or a small group of joint owners, who were responsible for paying land revenue. The Ryotwari system gave individual holders permanent rights over the land and made them directly responsible for paying land revenue.

Therefore, the incorrect statement is option 3. The Mahalwari system did not involve the government owning the agricultural lands.