The correct answer is option 3, P. V. Narasimha Rao. He served as the Prime Minister of India from 1991 to 1996. During his tenure, a constitutional status for the Panchayati raj (local self-governance at the village level) and urban self-governing institutions was accorded.

P.V. Narasimha Rao was known for his significant contribution to economic reforms and liberalization policies in India. However, it is important to note that while both Indira Gandhi and Rajiv Gandhi served as Prime Ministers of India, they did not implement the constitutional status for Panchayati raj and urban self-governing institutions.

Alert - correct answer should be: 4 Atal Behari Vajpayee. The correct answer should be Atal Behari Vajpayee, who served as the Prime Minister of India from 1998 to 2004. It was during his tenure that a constitutional status for the Panchayati raj and urban self-governing institutions was accorded. P.V. Narasimha Rao`s tenure was from 1991 to 1996 and did not include this development.