The Ryotwari System of Land Tenure refers to a situation where the ryot, or cultivator, is the owner of the land held by them. In this system, the ryot directly pays the revenue assessed on the land to the State. Option 1 correctly describes the Ryotwari System.

Option 2, where the ryot is an occupancy tenant and pays land revenue to the Zamindar, refers to the Zamindari System, not the Ryotwari System.

Option 3 describes the system of land leasing, where a person cultivates land leased from a landlord and pays rent to the landlord. This is not the Ryotwari System.

Option 4, where the land is collectively owned and cultivated on a cooperative basis, refers to the system of collective farming, not the Ryotwari System.

Therefore, the correct answer is option 1.