The incorrect statement in relation to Panchayats is option 4. The reservation of seats for Scheduled Castes (SCs) and Scheduled Tribes (STs) does have a connection with the proportion of their population. The Constitution of India provides for the reservation of seats in Panchayats for SCs and STs in proportion to their population. This is done to ensure adequate representation and to give these communities a voice and representation in the decision-making process at the grassroots level.

Option 1 is correct as the legislature of a state can indeed make provisions regarding the composition of Panchayats. This allows for flexibility in the structure and functioning of Panchayats to suit the specific needs of each state.

Option 2 is correct as the Panchayat area refers to the territorial area governed by a Panchayat. It is the geographical jurisdiction within which a Panchayat exercises its authority.

Option 3 is correct as the Gram Sabha includes all persons whose names are on the electoral rolls of the village within a Panchayat. The Gram Sabha is an important decision-making body at the village level, and its members participate in the functioning of the Panchayat.

Overall, option 4 is incorrect as the reservation of seats