The correct distinction between Lebanon's democratic system and Israel's is primarily related to the way Lebanon reserves offices and seats in parliament for certain groups.
Lebanon has a unique political system known as confessionalism, which allocates political power among various religious groups. Specifically, the distribution of parliamentary seats is based on religious affiliation, with a certain number reserved for Christians, Muslims, and Druze, among others. This approach aims to maintain a balance of power among Lebanon's diverse religious communities.
In contrast, Israel does not have a confessional system. While Israel is a parliamentary democracy with representation from various ethnic and religious groups, it does not reserve specific political offices or parliamentary seats for specific groups based on religion.
Thus, the key difference is: It reserves offices and seats in parliament for certain groups, while Israel does not.
The other statements provided are not accurate in the context of Lebanon and Israel's government structures. Lebanon is not a constitutional monarchy, and it is not dominated by Hamas; that organization is primarily associated with the Palestinian territories, not the Lebanese government.