Concept:Federalism is a system where governmental power is shared between a central authority and regional governments, allowing genuine devolution.
Explanation:Federalism creates two distinct levels of government: the national or central government and the state or provincial governments.
Each level exercises authority independently over its own constitutionally assigned matters.
This arrangement permits considerable devolution, as real legislative and executive powers are transferred to the regional governments.
Capitalism is an economic system and not a form of political organisation.
Fascism is a dictatorial system that concentrates all authority in one central leader or party.
Unitarism places all sovereign power in a single central government with little or no regional autonomy.
Therefore, the political system described in the question is clearly federalism.
Answer:B. Federalism