Explanation:

- The Lalit Kala Akademi is an esteemed national academy of fine arts in India.

- It was established to promote and propagate understanding of Indian art in India and abroad.

- Option 1, 1965: This is not the establishment year of the Lalit Kala Akademi.

- Option 2, 1956: A significant year for art in India, but not related to the Lalit Kala Akademi’s founding.

- Option 3, 1951: Some cultural developments occurred, but not the Akademi’s establishment.

- Option 4, 1954: This is the correct year when the Lalit Kala Akademi was established.