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A rural local government is popularly known by the name of
A. Panchayati Raj
B. Municipal Corporation
C. Municipal Council
D. Ward Councils

Answer
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Hint: Like Municipality and Municipal Corporation are for towns and cities, Panchayati Raj is for villages. When the population of that city reaches one billion, a city is governed by a Municipal Corporation. Municipal companies rely primarily on the property tax collected for their income.

Complete answer:
Now let us analyze the given options:
Option A: Panchayati Raj: Panchayati Raj is a system of local self-government of rural Indian villages as opposed to urban and suburban municipalities. It consists of the Panchayati Raj Institutions through which the self-government of the villages is carried out.

Option B: Municipal Corporation:Municipal corporation is the legal term for a local governing body, including (but not necessarily limited to) cities, counties, towns, townships, charter townships, villages and districts. The term may also be used to describe municipally owned corporations.

Option C:Municipal Council: In India, the Municipal Council, Municipality, Nagar Palika, Nagar Palika Parishad is an urban local authority that manages a city with a population of 100,000 or more. However, there are exceptions to this, as previously Nagar Palikas was constituted in urban centers with populations of more than 20,000, so all urban bodies that had previously been classified as Nagar Palikas even though their population was below 100,000.

Option D: Ward Councils: The Ward is a local authority area, usually used for electoral purposes. Wards are usually named after neighborhoods, thoroughfares, parishes, landmarks, geographical features and, in some cases, historical figures linked to the area (e.g. William Morris Ward in the London Borough of Waltham Forest). It's common in the United States to simply be numbered.

Thus, the answer is option A: Panchayati Raj.

Additional information: Panchayati Raj is responsible for implementation of Central and State Government Schemes including those 29 subjects listed in the Eleventh Schedule. Part IX of the Indian Constitution is the segment of the Constitution identifying with the Panchayats. It specifies that in states or Union Territories with in excess of 2,000,000 occupants there are three levels of PRIs: -
i) The Gram Panchayats at village level
ii) The Intermediate Panchayats at sub-district level and
iii) The District Panchayats at district level
iv) There are only two levels of PRIs in the states or union territories where the population is less than 2 million.

It was constitutionalised in the year 1992 through the 73rd Constitutional Amendment Act.
Gandhiji also held the assessment of strengthening of Panchayats for the improvement of country territories. Hence, perceiving their significance our Constitution producers made an arrangement for Panchayats in part IV of our constitution (directive principles of state policy).

Note: It has been set up in all the states of India by the acts of the state legislature to build democracy at the grass root level.The town or municipal area is divided into such wards on the basis of the population of that specific town. For each district, a delegate is elected by the citizens in that ward. As a councillor or corporator, a designated representative of a specific ward is appointed. For a term of five years, corporators are elected.