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Federalism refers to the system of governance in which power is divided between a central (national) government and various regional (state) governments. This division of power allows both levels of government to operate independently within their respective spheres of authority, providing a balance that can accommodate diverse interests and needs across a larger nation.

When considering the structure of federalism, it's clear that the shared governance helps ensure that both state and national interests are represented in the political process. The central government can handle issues that affect the country as a whole (like national defense or foreign policy), while states manage more localized issues (such as education, transportation, and public safety).

Although individual states managing their own education systems is a component of federalism, it does not encompass the full meaning of the concept. Similarly, the election of local officials pertains to local governance and is not a defining feature of federalism. The separation of powers within the national government, on the other hand, addresses how power is distributed among the executive, legislative, and judicial branches but does not highlight the relationship between national and state governments. Hence, the division of power between national and state governments is the quintessential example of federalism.