Final answer:
For a federal grant geared towards counseling youthful offenders, the correct choice would be to use Restricted funds, as they are specifically set aside for given purposes.
Step-by-step explanation:
If resources provided by a federal grant must be segregated and used specifically for the counseling of youthful offenders, the appropriate type of funds to use would be Restricted funds. These funds are earmarked for a specific purpose and are not to be commingled with general operating funds. In contrast, General funds are typically used for the day-to-day operations of an entity and are not restricted to specific programs or objectives. Special funds might also be allocated for particular uses but are not as narrowly defined as restricted funds, and Unrestricted funds can be used for any purpose at the discretion of the entity's management.