In Article 40 of the Constitution of India, the state is mandated to take steps to organize and empower certain units of self-government. The option "village panchayats" correctly represents the units referred to as "X" in the statement.
Village panchayats are local self-government bodies at the village level in India. These institutions are responsible for governing and administering local affairs within their respective jurisdictions. They play a crucial role in grassroots democracy and decision-making processes.
The option "zilla parishads" refers to district-level self-government bodies in India. While these institutions also have powers and authority, they are not explicitly mentioned in Article 40 of the Constitution.
The option "inter-state councils" is incorrect because inter-state councils are bodies established between states within the Indian federal structure to promote cooperation and coordination between them. They do not fall under the purview of Article 40.
Therefore, the correct answer is option 1, village panchayats, as they are mentioned in Article 40 and are empowered as units of self-government.