- Statement (i) is correct: The Ashok Mehta Committee (1978) recommended replacing the existing three-tier Panchayati Raj System with a two-tier system consisting of the Zilla Parishad at the district level and Mandal Panchayat (a group of villages) below it. - Statement (ii) is incorrect: The committee's recommendations focused on the structural and functional aspects of Panchayati Raj and did not specifically include the setting up of 'Peace Committees' for 'non-secular issues'. - Statement (iii) is correct: The committee emphasized the need for genuine devolution of powers, resources, and authority to the Panchayati Raj bodies to make them effective democratic institutions. - Statement (iv) is incorrect: The Ashok Mehta Committee actually advocated for the open participation of political parties in Panchayati Raj elections, arguing it would bring clarity and accountability.