Monarchy is a form of authoritarian government in which power is handed down through family lines and rulers stay in power for life. The correct answer is B. Just take a look at contemporary England and its Queen Elizabeth II. Oligarchy refers to a small group of people who rule a country. Republic refers to the President who is elected by the people and his "reign" is not hereditary. Plutocracy is a country which is ruled by the rich people. Theocracy is a state in which the church rules, along with its priests, in the name of God.