Indian Federalism can be best explained in terms of constitutional devolution of powers to the state governments (option C). This means that powers are shared between the central government and the state governments, with the Constitution clearly defining the powers and functions of each level of government. This system of federalism is a fundamental feature of India's political structure and is aimed at ensuring a balance of power between the center and the states.

Constitutional Devolution of Powers
- The Constitution of India provides for a division of powers between the central government and the state governments. The Seventh Schedule of the Constitution lists the subjects on which each level of government has the authority to make laws.
- The Union List includes subjects on which only the central government can legislate, such as defense, foreign affairs, and currency. The State List includes subjects on which only the state governments can legislate, such as police, public health, and agriculture.
- Concurrent List includes subjects on which both the central and state governments can make laws, such as criminal law, bankruptcy and insolvency, and marriage and divorce. In case of a conflict between a central law and a state law on a concurrent subject, the central law prevails.

Features of Indian Federalism
- The central government has certain powers that are exclusive to it, while the state governments have their own powers. This division of powers ensures that both levels of government have the ability to make decisions and implement policies in their respective domains.
- The Constitution also establishes independent institutions like the judiciary, which interprets the Constitution and resolves disputes between the center and the states. This helps to maintain the balance of power and prevent any one level of government from becoming too dominant.
- The central government provides financial support to the states through various grants and schemes. However, the state governments also have the power to raise revenue through taxation and other means.
- The state governments have their own executive and administrative machinery, which enables them to function independently in their areas of jurisdiction.

Advantages of Indian Federalism
- Constitutional devolution of powers allows for the accommodation of regional diversity and local needs. It enables state governments to address local issues more effectively and make policy decisions based on local conditions.
- Federalism also promotes a sense of participation and ownership among the states, as they have a say in the decision-making process and can influence policies that directly affect them.
- It helps in the distribution of power and resources, preventing excessive concentration of power in the hands of the central government.
- Federalism also serves as a check on the exercise of power by any one level of government, ensuring a system of checks and balances.

In conclusion, Indian Federalism is best explained in terms of constitutional devolution of powers to the state governments. This system allows for a division of powers between the center and the states, ensuring a balance of power and promoting regional diversity and local participation.