The correct option is Neither I nor II. Important Points In a democracy, any group of citizens is free to form a political party. In this formal sense, there are a large number of political parties in each country. More than 750 parties are registered with the Election Commission of India. But not all these parties are serious contenders in the elections. Usually, only a handful of parties are effectively in the race to win elections and form the government. Major parties that contest elections in India: Nationalist Congress Party. ​​​ Indian National Congress. Communist Party of India (Marxist) Communist Party of India. Bharatiya Janata Party. Bahujan Samaj Party. All India Trinamool Congress. The Gram Panchayat is divided into wards and each ward is represented by a Ward Member or Commissioner, also referred to as a Panch or Panchayat Member, who is directly elected by the villagers. The Panchayat is chaired by the president of the village, known as a Sarpanch. Thus, we can say elections to the panchayats are held. Additional Information A political party is a group of people who come together to contest elections and hold power in the government. They agree on some policies and programs for the society with a view to promoting the collective good. Parties contest elections. In most democracies, elections are fought mainly among the candidates put up by political parties. Parties select their candidates in different ways. In some countries, such as the USA, members and supporters of a party choose its candidates. Now more and more countries are following this method. In other countries like India, top party leaders choose candidates for contesting elections.