The term that best describes the type of government in which power to rule is held by a small, usually self appointed elite is called an oligarchy. The correct answer is B.
Oligarchy comes from the greek word "Oligo" meaning few, and archo, which means type of government, this means literally "the power of a few" or "the government of a few", this makes reference to a smal group of people having control of a country, nation, or institution, usually are nobility, wealth or religious people that have the control without elections or consults done to the people.
Jefferson went to great lengths to emphasize the distinction between state and federal power since he was afraid that the federal government would become too powerful and begin to resemble a monarchy.
The iron curtain refers to the Berlin Wall which separated Europe during the Cold War. This term symbolizes the efforts by the Soviets to block itself from the West.