What does the term 'federalism' refer to in the context of the U.S. government?

The term 'federalism' in the context of the U.S. government specifically refers to the division of power between national and state governments. This foundational principle establishes a system in which both levels of government have their own distinct areas of authority and responsibilities.

Federalism allows for a balance of power, enabling states to exercise autonomy in certain legislations and policies while the national government retains authority over matters that affect the country as a whole. This structure is pivotal in safeguarding the rights of states and preventing the concentration of power in a single central body, promoting a more localized governance approach.

The other options represent different concepts within the structure of government; they do not accurately define federalism. For instance, the separation of the judiciary from the executive relates to the system of checks and balances, while the exercise of military authority pertains to military powers, and the integration of various branches of government refers to how the legislative, executive, and judicial branches interact.