Correct Answer - Option 2 : 3, 5, 2, 4, 1
The words in logical and meaningful order are as follows:
3. Nagar panchayat → It exists for areas in transition from rural to urban.
5. Municipal council → It exists for smaller urban areas.
2. Municipal corporation → It exists for larger urban areas.
4. State government →It exists for the states.
1. Central government → It exists for the whole country.
The level of government has been arranged from lower level to higher one.
Hence, 3, 5, 2, 4, 1 is correct.