The correct response is: Give power and leadership only to state governments.
Federalism is a system of government in which power is divided between a central authority and constituent political units (like states). It typically involves sharing power between national and regional governments, rather than concentrating it solely at one level. However, since the provided options do not directly reflect the typical understanding of federalism, the option that most closely aligns with the idea of distributing power among various levels would be better described as:
Split power and leadership between state and local governments.
This reflects the essence of federalism by indicating a division of responsibilities among different levels of government.