Final answer:
The national government can distribute money to states with no strings attached or with stipulations.
Step-by-step explanation:
When it comes to distributing money from the national government to states, there are two approaches: distributing money with no conditions (Option a) and distributing money with stipulations (Option b). Distributing money with no strings attached means that states can use the money however they see fit. On the other hand, distributing money with stipulations means that the money can only be used for a specific purpose as determined by the national government.
Option c, letting states decide how they want to receive the money, is not mentioned as a choice in the question. Option d, none of the above, is also not a correct answer because the question does provide valid options.