Final answer:
The correct word to fill in the blank in Rushdie's statement about India's old 'Functioning ______' is 'Anarchy'.
Step-by-step explanation:
Rushdie writes that he believes that the old "Functioning Anarchy" of India will continue. The correct word that goes in the blank is a) Anarchy. While the term 'anarchy' often represents the absence of organized government and is generally thought to be an undesirable state for a society,
Rushdie uses it in a more nuanced way to describe a complex system in India where there is a seeming disorder on the surface, yet it somehow functions. This idea is aligned with broader theoretical perspectives on government and power which explore different forms of governance, their evolution, and their impact on society.