Explanation:

Fourth option is correct.

The Montauge Chelmsford Report is also known as 'Report on Indian Constitutional Reforms'. This report became the basis for Government of India Act 1919.

Significance of Montagu-Chelmsford Report (MCR)- India’s Magna Carta:

• The MCR stands out for proposing some of the most radical administrative changes and for giving provincial legislatures the mantle of self-governance.
• To this extent, the report advocated the need “to emancipate the local governments and legislatures from central control; and to advance, by successive stages, in the direction of conferring responsible government on the provinces.”
• The Montagu-Chelmsford Committee visited Madras Presidency to gather the views of political leaders and included the “creation of municipalities and local body institutions with sufficient autonomy to handle their local issues… bereft of the intrusive control of the Government.”
• They further demanded that administration of the Presidency be eventually moved to the local legislature. To this end, they suggested that departments in administration be placed under the control of legislatures.
• Ultimately, the MCR established the framework for devolution of powers and gave credence to the cry for self-governance. This cannot come as a surprise because the report recommended that “the Provinces are the domain in which the earlier steps towards the progressive realisation of responsible government should be taken”.
• Another one of the most far-reaching objectives of the report was to elucidate the principle of accountable governance by directing that the “Government of India must remain wholly responsible to Parliament.”