What is the importance of the judiciary in federal disputes?

Correct answer: It can resolve constitutional disputes between the Centre and the states

Direct answer: A is correct. In a federal system, constitutional powers are divided between the Union or central government and the states. Disagreements may arise about which level of government can make a law, take an action, or exercise a particular power. An independent judiciary can interpret the Constitution and settle such disputes according to constitutional rules rather than political strength or force. Its decision helps clarify the division of powers and maintains the constitutional structure. Option A correctly identifies this judicial function. B is wrong because courts do not remove states from the electoral system. C is wrong because a court cannot turn the Centre into a private company. D is wrong because a local panchayat and the Supreme Court have entirely different constitutional roles and levels of authority. The judiciary does not favour one level automatically; it examines the Constitution and applicable law. Memory cue: in federal disputes, the Constitution is the common rulebook and the judiciary interprets it.