Final answer:
Popular sovereignty is compatible with a democracy, where all citizens have an equal say in government policy (B). In contrast, oligarchy, absolute monarchy, and theocracy do not align with popular sovereignty, as these forms of government concentrate power in the hands of a few or a single ruler.
Step-by-step explanation:
The concept of popular sovereignty is most compatible with a democracy. In a democratic form of government, all citizens have an equal voice or vote in determining state policy, which aligns with the principle of popular sovereignty where the authority of a state and its government are created and sustained by the consent of its people, through their elected representatives. This is in contrast to authoritarian dictatorship, absolute monarchy, or theocracy, where power is held by a single individual, a hereditary ruler, or a religious institution, respectively, without regard for the collective will of the people.
Looking at other forms of government, an oligarchy is a government in which a small group of elite people hold political power. The United States, after its independence, established a form of government based on republicanism, which involves elected representatives and does not include a monarch. While many constitutional monarchies begun as absolute monarchies, they have since evolved to a system that acknowledges a monarch but also establishes a constitution that limits the monarch's powers.