Concept:A system with two distinct levels of government is known as a federal system.
Explanation:In a federal state, governmental power is shared between a central or national government and smaller political units such as states or provinces.
Each level of government operates independently within its own constitutional area while also cooperating on matters of national importance.
For example, in Nigeria, power is divided between the federal government and the state governments.
This two-tier structure is different from a unitary state, which has only one central government.
It is also different from a coalition government, which refers to a temporary alliance between political parties and not levels of government.
Therefore, a state that has two levels of government is commonly referred to as a federal state.
Answer:C. federal state