The correct answer is - C. power divided between state and federal governments.
The federalism is a term that basically means that there's a unit or units in the country itself, that have their own regulations, laws, and authorities, but still commit to the country's officials and respect and collaborate with them.
This is the case with the United States, where the country is divided into 52 federal states. Each of them has its own governing body, laws, regulations, but also, each of them is under the authority of the states's government and has to obey and respect its orders.
There's multiple countries in the world that have federal states (in one from or another) apart from the United States, like Russia, Spain, Germany, UAE...