Well, personally I think that it is flawed: it limits the inflow of new ideas into politics.
I think that one way to address it is to abolish the electoral college and introduce country-wide representative elections and not a "winner takes it all" system.
Where is the diagram and what is the question asking...
Your answer would be A & C.
A because they idea of the Articles of Confederation looked much better on paper, to unite the 13 Colonies, and C because, once the Articles were put into play, Congress never had any real power.
Land which has not yet been divided into states is almost always referred to as a "territory". Many of the places that are currently states in the US began as territories, such as Alaska.