The statement "The Panchayati Raj elected functionaries will be disqualified to hold their offices if they have more than two children" was NOT proposed by the 73rd Constitutional Amendment in the area of Panchayati Raj.

The 73rd Constitutional Amendment, passed in 1992, aimed to strengthen and decentralize Panchayati Raj institutions in India. It introduced several provisions to empower and enhance the functioning of these institutions at the village, intermediate (block), and district levels.

Among the provisions introduced by the amendment, the following were proposed:

1. Thirty per cent seats in all elected rural local bodies will be reserved for women candidates at all levels. This provision was introduced to promote women`s participation and representation in grassroots governance.

2. The States will constitute their Finance Commissions to allocate resources to Panchayati Raj Institutions. This provision aimed to ensure financial autonomy and adequate resources for Panchayati Raj institutions to carry out their functions effectively.

3. The elections will be held in six months time if Panchayati Raj bodies are superseded or dissolved by the State government. This provision aimed to ensure that Panchayati Raj institutions are reconstituted in a timely manner to maintain local governance continuity.

However, the provision stating disqualification of elected functionaries if they have more than two children was not included in the 73rd Constitutional Amendment. This provision relating to the number of children is not a requirement or disqualification criterion mentioned in the amendment.

Therefore, the correct answer is: The Panchayati Raj elected functionaries will be disqualified to hold their offices if they have more than two children.