The correct answer is (c).

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Explanation⬇️
The correct answer is (c).
Powers, Authority and Responsibilities of Panchayats:
Article 243G of the Constitution states that subject to the provisions of this Constitution, the Legislature of a State may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government. Hence, statement 1 is not correct.
Such law may contain provisions for the devolution of powers and responsibilities upon Panchayats at the appropriate level, subject to such conditions as may be specified therein, with respect to:
The preparation of plans for economic development and social justice; and
The implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule. Hence, statements 2 and 3 are correct.