Step 1: Understand the role of the Public Accounts Committee (PAC).
The Public Accounts Committee is one of the standing committees of the Indian Parliament (and also exists in state legislatures).
Its primary function is to examine the accounts showing the appropriation of sums granted by Parliament for the expenditure of the Government of India, the annual finance accounts of the Government, and such other accounts laid before Parliament as the Committee may think fit.
It scrutinizes government spending and financial accountability.
Step 2: Recall its historical establishment.
The Public Accounts Committee in India was first set up in 1921 under the provisions of the Government of India Act, 1919 (Montague-Chelmsford Reforms).
It is one of the oldest parliamentary committees.
Step 3: Evaluate the options.
Option (4) 1921 is the correct year.