Such a government is known as a Democracy. It is the most popular form of government in the world and works by citizens electing people who they think can manage affairs properly to office.
When in office these officials are still bound by the same laws that bind the citizens. Their power is limited by a Constitution as well as various laws which all work to ensure that these officials do not abuse their privilege.
The advantages that Britain had against America during the American War for Independence was they had a well trained army and had access to funds to recruit foreign soldiers. The correct answer is B.