The correct answer is Municipality.

• A Nagar Palika or Municipality is an urban local body that administers a city with a minimum population of 100,000 but less than 1,000,000.
• The members of the Nagar Palika are elected representatives for a term of five years.
• The town is divided into wards according to its population, and representatives are elected from each ward.
•  A chief officer, along with officers like an engineer, sanitary inspector, health officer, and education officer who come from the state public service are appointed by the state government to control the administrative affairs of the Nagar Palika.

•  Urban Local government implies the governance of an urban area by the people through their elected representatives.
• 74th Constitutional Amendment Act, 1992 provided constitutional status to local urban bodies.
• This act added a new part IX-A to the Constitution entitled as ‘The Municipalities’ and a new Twelfth Schedule containing 18 functional items for municipalities.

• The institutions under the Municipalities are of three types:
  • ​Nagar Panchayat, for a transitional area, i.e., an area which is being transformed from a rural area to an urban area.
  • Municipal Council for a Smaller Urban area.
  • Municipal Corporation for a larger urban area.