Explanation:

- The Finance Commission is a constitutional body in India, formed every five years to define the financial relations between the central government and individual state governments.

- The Fifteenth Finance Commission was set up by the President of India with the aim to assess and recommend the distribution of net proceeds of taxes between the Center and the States.

Now, let’s look at the options:

- Option 1, 2016: This year isn't correct for the formation of the Fifteenth Finance Commission.

- Option 2, 2017: In November 2017, the Fifteenth Finance Commission was indeed constituted under the chairmanship of N.K. Singh.

- Option 3, 2018: The Commission was active during this year, but it was not constituted in 2018.

- Option 4, 2019: By this time, the Commission had already been operational since 2017.

Correct Answer: Option 2, 2017

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