The Louis fourteenth statement " I am the State" refers to a political system in which the kingship is hereditary. It is known as Absolute Monarchy. In such a Government it is the king who holds ultimate authority. There are no laws that can restrict the monarchs' authority. In a constitutional monarchy, there are some laws to restrict the power of the monarch. Brunei and Saudi Arabia are absolute monarchies in modern times.
"I am the state" basically means that he was the one who made all the decisions - he was the state system, he represented the entire government. Therefore, D is the correct answer. Absolute Monarchy - the monarch is in complete control.