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What does federalism entail?

  1. Power divided between national and local governments

  2. Power held entirely by the national government

  3. Power held entirely by state governments

  4. Power is divided between the national and state governments

The correct answer is: Power is divided between the national and state governments

Federalism entails a division of power between the national and state governments, as indicated in option D. Option A is incorrect because federalism does not mean the power is solely divided between national and local governments, but rather between national and state governments. Option B is incorrect because it suggests that all power is held by the national government, which is not the case in a federal system. Option C is incorrect because it suggests that the state governments hold all power, which is also not the case in federalism. Therefore, option D is the most accurate explanation of what federalism entails.