The correct answer is D) powers not explicitly reserved for the federal government are given to the states.
Under the Constitution, what happens when conflicts arise between state and federal government is that powers not explicitly reserved for the federal government are given to the states.
This can be clearly read in the 10th Amendment to the United States Constitution that "The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the States respectively, or to the people." This means that the states have the powers not granted to the federal government. So states can offer education, own property, operate a justice system, raise funds, and regulate the industry, among others.
