Final answer:
Federalism connects to the concept of limited government through the division of powers between the national and state governments, ensuring a balance that prevents the concentration of power in a single entity.
Step-by-step explanation:
The principle of federalism is connected to the idea of limited government because it helps to prevent the concentration of power either at the national level or at the regional level. In essence, federalism divides powers between a central, or national, government and individual state or regional authorities. This division creates a check and balance system where neither the federal government nor the state governments can assume complete control, thereby limiting the overall scope of government power. The correct answer in the context of the student's question is that federalism divides powers between central and regional authorities (option b).