The correct answer is C) states kept their own laws and courts, but federal courts reverse state decisions.
The compromise that Congress reached in establishing a court system was "states kept their own laws and courts, but federal courts reverse state decisions."
The Judiciary Act of 1789 was the act to establish Judicial courts in the United States. It was signed on September 24, 1879, by President George Washington. Connecticut Senator Oliver Ellsworth was the one who established the jurisdiction and structure of the federal court system and also created the figure of the attorney general.