Explanation:

2nd option is correct. 

The Panchayat Samiti is the second on join tier of the Panchayati Raj.
The Panchayat Samiti generally consists of-
(1) about twenty members elected by and from the Panches of all the Panchayats falling in the block area;
(2) two women members and one member each from the Scheduled Castes and Scheduled Tribes to be co- opted, provided they do not get adequate representation otherwise;
(3) two local persons possessing experience of public life and administration, which may be beneficial for the rural development;
(4) representatives of the Co-operatives working within the jurisdiction of the block;
(5) one representative elected by and from the members of each small municipality lying within the geographical limits of a block;
(6) the members of the State and Union legislatures representing the area are to be taken as associate members.