The correct answer is D) The people elect representatives, who govern according to the people’s wishes.
The statement that best describes how popular sovereignty applies to federalism is "The people elect representatives, who govern according to the people’s wishes."
Federalism was conceived as a protection to the accumulation of power in government and to foster citizen's liberties. Under the federalist system, the states and the federal government share power for the benefit of the citizen. People can elect representatives that need to get results for the people's petitions and create the type of legislation that benefits the most.