Federal government includes all 50 states while state government only includes the state. The state makes its own laws and has its own governor, mayors, etc. Federal follows the basis of the constitution.
B, japan even though I may be wrong, "Arahitogami – the concept of a god who is a human being applied to the Emperor Shōwa (Emperor Hirohito as he was known in the Western World), until the end of World War II." (from google)
The correct answers to this question would be alternatives:
A) "using stem cells to treat diseases."
C) "diagnosing genetic diseases."
Biotechnology is deeply related to genetic manipulation of microorganisms for the production of antibiotics, hormones, etc.
With that in mind, we can conclude that the two alternatives that most relate to the activities mentioned above, are the ones described on alternatives A and C.
Deep knowledge in genetics is necessary to identify genetic diseases as well as using stem cells to cure diseases.