(B) Supreme Court of India
According to the features of federalism, courts have the power to interpret the constitution and act as an umpire if disputes arise between different levels of government.
Source: What is federalism?, Chapter 2
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The source passage clearly states: "The highest court acts as an umpire if disputes arise between different levels of government in the exercise of their respective powers." In India, the Supreme Court is the highest court. The Finance Commission deals with financial relations, the President has a different constitutional role, and the Prime Minister is the head of the executive — none of these resolve Centre-State disputes judicially. Examiners expect you to link the correct institution to its constitutional function.