Hey there! I'm happy to help!
Real quickly, don't ever call yourself dumb, because that's a fixed mindset! You have to have a growth mindset, because our intelligence is not fixed. If you work hard at learning and improving your brain consistently you will achieve a high level of intelligence, but you have to believe you can! :D
Let's think about this on a different scale: local, state, and national. The U.S. has an enormous rule book called the Constitution and there are many other policies and laws they have in place. At the state level, there are a few separate policies and regulations, but not many are needed because the national government has most of them covered. The same is true for local governments; are there any specific laws in your city? Probably not really, because most of them are state or national laws.
We see that the smaller the locality, the less laws there are, because most are covered by higher ones. With our actual answer options, we have state, county, and local. Out of these, local is the smallest, so they most likely have the fewest laws. Therefore, the answer is B) Local government.
Have a wonderful day! Keep on learning! :D