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The objective of starting the Nirmal Gram Puraskar incentive scheme was to encourage Panchayati Raj Institutions to take up sanitation promotion for attaining a 100% open defecation-free environment. This means that the scheme aimed to motivate local government bodies to promote and implement sanitation initiatives in order to eliminate open defecation completely.
Option 2, enabling rural schools to provide safe and clean drinking water for children, does not align with the objective of the Nirmal Gram Puraskar scheme. It focuses on the provision of drinking water in schools, which is a separate initiative.
Option 3, providing toilets to all rural households, is related to the objective of the scheme. However, it does not fully capture the aim of encouraging Panchayati Raj Institutions.
Option 4, providing financial assistance to states to install water purification systems in rural schools, is not relevant to the objective of the Nirmal Gram Puraskar scheme. It pertains to water purification systems in schools only, rather than overall sanitation promotion.
Therefore, the correct answer is option 1.