Proportional representation (PR) is a voting system that aims to allocate seats in a legislative body in proportion to the number of votes each political party receives. This system is considered to be more representative and equitable than other voting systems, such as the first-past-the-post system, which often leads to a disproportionate distribution of seats.

The correct answer to the question is option 'C', the Netherlands. The Netherlands is an example of a country that uses a proportional representation system in its electoral process. However, it is important to note that other countries such as India, the UK, and New Zealand also use elements of proportional representation in their electoral systems.

Below are the details of the example of a proportional representation system in the Netherlands:

1. Proportional Representation in the Netherlands:
- In the Netherlands, the proportional representation system is used to elect members of the House of Representatives, which is the lower house of the Dutch parliament.
- The country follows a party-list proportional representation system, where voters vote for a political party rather than individual candidates.
- The number of seats a party receives in parliament is determined by the proportion of votes it receives nationwide.
- Political parties compile candidate lists, and the order of candidates on the list is determined by the party.
- Seats are then allocated to parties based on the proportion of votes they receive using a formula called the D'Hondt method.

2. Advantages of Proportional Representation:
- PR systems tend to result in a more accurate reflection of the electorate's preferences, as parties receive seats in proportion to their vote share.
- It allows for better representation of minority groups and smaller parties, as they have a higher chance of winning seats compared to winner-takes-all systems.
- PR systems encourage coalition governments, as parties often need to form alliances to secure a majority of seats.
- It promotes inclusivity and diversity, as parties strive to appeal to a broader range of voters.

3. Other Examples of Proportional Representation Systems:
- India: Although India primarily follows a first-past-the-post system, it also incorporates elements of proportional representation in the form of reserved seats for marginalized communities.
- UK: The UK uses a mixed-member proportional system, where some members of parliament are elected through the first-past-the-post system, and others are elected from party lists to ensure proportional representation.
- New Zealand: New Zealand uses a mixed-member proportional system similar to the UK, where voters cast two votes – one for an electorate representative and another for a political party.

In conclusion, while the Netherlands is an example of a country that uses a proportional representation system, it is important to recognize that other countries also incorporate elements of proportional representation in their electoral systems.