Final answer:
Option B. In a unitary government system such as the UK or France, the central government holds most of the power, and local governments operate under its control without independent action. Thus, the correct statement is that 'Power is held by the central government over local government.'
Step-by-step explanation:
The question seeks to understand the nature of power distribution in a governmental system. In a unitary government system, the central government holds the most power, with local and regional authorities operating under its control or authority. Local governments execute directives from the central government but do not act independently. A good example of unitary states are the United Kingdom and France, where the national parliament or government respectively holds the governing power.
Conversely, in a federal government, power is shared between the central government and subnational governments, such as states or provinces. The United States, Canada, and Germany are examples of federal systems, where the constitution grants certain powers to the national government while others are retained by the states. Option B, 'Power is shared between local and central governments,' typically describes a federal system rather than a unitary one. In the context of a unitary system, the correct statement to complete the diagram would be Option A, 'Power is held by the central government over local government.'