Explanation:

- The Panchayati Raj system is a decentralized form of governance in India.

- It functions at different levels to ensure local self-governance and development.

- Option:1 - Three:

- The Panchayati Raj structure is indeed divided into three tiers:

- The Village level (Gram Panchayat)

- The Block level (Panchayat Samiti)

- The District level (Zila Parishad)

- Option:2 - Four:

- Incorrect. There are no four tiers in Panchayati Raj.

- Option:3 - Five:

- Incorrect. Five tiers do not exist in the system.

- Option:4 - Two:

- Incorrect. The system consists of three tiers, not two.