Austria-Hungary was home to many ethnic groups
The correct answer would be alternative C)"It maximizes the political freedoms guaranteed to individual state governments."
A Confederal System of Government indeed maximizes the freedoms of its citizens, by giving more power and authority to state and local institutions.
A Unitary government benefits those around the authoritarian leaders, and least influential regions have a greater chance of being under supported.
In 1910-1940s there was a resistance called the Harlem resistance. This caused the black population to migrate all over the U.S