What is the article, first of all?
The federalism divides and balances power between state and national government.
“Laboratories of federalism/democracy” relates to the advantage of federalism: federalism allows and encourages innovation and experminetation.
The federalism focuses on creating culture of innovation for a broad range of policy areas—particularly for education.
D) They all believed in a federal system of government.
All of them suggested that the government would work better if shared into smaller versions of itself, for the greater good of the State.
The power to make political decisions must not be held by one specific, but divided, supporting a democratic system;
Sharing the power means that the problems would be driven to local issues, appealing to the 'Big Chief' - the Federal State. You see, small issues leads to small work, which leads to less expenditures...