Explanation:

The **Indian Councils Act of 1892** is considered the first legislative measure that introduced the principle of election, albeit indirectly, in India. While the term 'election' was carefully avoided in the Act, it allowed for the nomination of some non-official members to the legislative councils by local bodies (like municipalities, district boards, and universities) and chambers of commerce, subject to the approval of the Viceroy. This marked a significant, albeit limited, departure from the purely nominated system. Option B is correct. The Indian Councils Act of 1861 (Option A) merely expanded the legislative councils by including a few nominated non-official members. The Indian Councils Act of 1909 (Morley-Minto Reforms) (Option C) significantly expanded the elective principle, introducing direct elections for some seats and separate electorates for Muslims. The Government of India Act of 1919 (Montagu-Chelmsford Reforms) (Option D) further extended direct elections and introduced dyarchy in the provinces, establishing a more substantial electoral system.