Which of the following best elaborates on the term 'sovereignty' in the context of federalism?

The term 'sovereignty' in the context of federalism refers to the distribution and division of authority between the national government and state governments. In a federal system, both levels of government are granted their own areas of jurisdiction where they can exercise power independently. This means that while the national government has certain powers, states also retain authority in various areas, allowing them to govern themselves in matters not specifically allocated to the national government.

This interplay is crucial to understanding federalism, as it creates a balance that enables multiple governing bodies to coexist and share responsibility over a country's governance. This shared authority is fundamental to the structure of federal systems, allowing for local governments to operate effectively while still being part of a larger national framework. The element of shared authority emphasizes the complexity of sovereignty in a federal context, as it is not simply a matter of one level of government holding ultimate power over the other.