Answer:
The letter C is the right answer.
Step-by-step explanation:
Federalism is a form of state organization in which federated entities are endowed with the administrative, political, tax and financial autonomy necessary to maintain the balance established between them for the constitution of the Federal State. As this is an “agreement” between the federated entities, there is the implication of reciprocity and cooperation between the involved, central government and local subnational governments. In other words, we can say that federalism establishes a relationship of autonomy and cooperation between the Union, States and Municipalities.
This type of governmental organization establishes the existence of direct democracy at the municipal rather than state level, as in the municipalities it is more common for citizens to participate directly in government decision-making.