The correct answer is D.
There are two types of courts in the USA: state courts and federal courts.
One of the major difference between them is their establishment.
State and local courts are established by a state and federal courts are established under the U.S. Constitution to decide disputes involving the Constitution and laws passed by Congress.
They also have a different jurisdiction ( the kind of cases a court is authorized to hear ). State courts have broad jurisdiction and they deal with cases of general public concern such as robberies, traffic violations, family disputes etc. Federal courts deal with cases listed in the Constitution and specially provided for by Congress. Some examples: cases violating the Constitution, bankruptcy, copyrights, patent and maritime law cases.