Step 1: Understanding the Concept:
The Census of India defines an "urban settlement" in two ways. The first is a 'Statutory Town' (option 4). The second is a 'Census Town', which must satisfy three specific criteria simultaneously. This question tests the knowledge of those three criteria.
Step 2: Detailed Explanation:
The definition of a Census Town, as per the 1991 Census (and subsequent censuses), requires a settlement to meet all three of the following conditions:
1. A minimum population of 5,000. (Option 1 is correct).
2. A population density of at least 400 persons per square kilometer. (Option 3 is correct).
3. At least 75 percent of the main male working population engaged in non-agricultural pursuits.
Option (2) states the requirement is "At Least 50 percent," which is incorrect. The actual threshold is 75%. Option (4) describes Statutory Towns, which is the other, separate definition of an urban area and is correct in its own right. The question asks which criterion is NOT correct for the definition.
Step 3: Final Answer:
The statement that at least 50 percent of male workers should be in non-agricultural pursuits is incorrect; the correct figure is 75 percent.