I did this with the GTO Twin Turbo 98', fully modified so you could easily do this with the Lancer. The driving assists you will want to use are Skid Recovery Force and ABS 1. For tuning (hopefully your car is fairly stock) install the mid range turbo, then the rest of the performance upgrades that will get you just below the cap. Also install all of the drive train upgrades, full racing suspension. The transmission upgrade is also a good choice because the rally courses have a few straight but are mainly made up of turns. By tuning the transmission to a top speed of 140-160 your car will be able to take advantage of the mid-range turbo for the corners and will very rarely hit the rev limiter on the straights. For tires choose Sports Soft. Another good thing to do is check to see if you can add AERO to the car for extra down force.
Adjust the torque range to 30/70, lower the suspension all the way, increase the spring rates 1.0, up the bumps +1, up the sways +2. Add 1.5 camber front and back. Leave the LSD setting alone (I reduce the front braking sensitivity by 10.) If you have aero, max it out.
This seems like a lot to beat the challenge, not all of it is necessary, but your fully upgraded car can still be used for Bspec Bob or other challenges.