Final answer:
The Panchayat Raj system in India comprises Village, Block, and District levels, ensuring grassroots participation in governance.
Step-by-step explanation:
The system of Panchayat Raj involves different levels of governance within India's federal system. Structurally, it is designed to be a decentralized form of government at the grassroots level to ensure direct participation by the local community in governance. The correct answer to the student's question is that the Panchayat Raj system involves Village, Block, and District levels. These units work collaboratively to manage local affairs and development, and this system is crucial for ensuring that governance is accessible and responsible to the rural population of India.