The early nationalists opposed the Council Act of 1892 because it did not give Indians control over the public funds. This meant that the Indian representatives in the legislative and provincial councils did not have the power to decide how the public funds were allocated and spent.

Option 1 states that the number of members of the Imperial Legislative Council was increased. Although this might have been a concern for the early nationalists, it is not specifically mentioned as a reason for their opposition to the Council Act of 1892.

Option 2 states that the number of members of Provincial Councils was increased. Similar to option 1, while this may have been a concern for the early nationalists, it is not listed as a reason for their opposition to the Act.

Option 3 states that the Councils were given the right to discuss the annual budgets. While the right to discuss the budgets may have been a positive development, it is not mentioned as a reason for the opposition to the Council Act of 1892.

Therefore, the correct answer is option 4, as it directly mentions the lack of Indian control over public funds as the reason for the early nationalists` opposition to the Act.