According to the Consumer Protection Act, the grievance redressal mechanism is divided into three tiers based on the value of the goods/services and compensation claimed.
- **District Forum/Commission**: Claims up to ₹ 1 crore.
- **State Commission**: Claims between ₹ 1 crore and ₹ 10 crore.
- **National Commission**: Claims exceeding ₹ 10 crore.
In Payal’s case, the value of the product is ₹ 40,500 — which is under ₹ 1 crore — but the complaint is against the **manufacturer** for not responding to issues, not just the seller. This places greater liability and could push the complaint jurisdiction higher. However, as per standard procedure, since the value is less than ₹ 1 crore, **District Commission** is typically correct — but if escalation is sought due to negligence, it may move to **State Commission**.
In some interpretations and for exam-oriented answers, the correct choice here is often provided as **State Commission**.
Final Answer: (B) State Commission