Introduction
The Parliament of India is the supreme law-making institution in the country. It is responsible for enacting laws, amending existing laws, and reviewing and scrutinizing the actions of the government.

Explanation
The correct answer is option 'B' - Supreme. Here's why:

Parliamentary System
India follows a parliamentary system of government, which means that the Parliament is the highest legislative body in the country. The Parliament consists of two houses - the Lok Sabha (House of the People) and the Rajya Sabha (Council of States). The Lok Sabha is directly elected by the people, while the Rajya Sabha members are elected by the members of the State Legislative Assemblies.

Law-Making Authority
The primary function of the Parliament is to make laws. It has the authority to legislate on matters that fall under the Union List, Concurrent List, and, in certain circumstances, even the State List. The Union List includes subjects such as defense, foreign affairs, and atomic energy, which are exclusively under the control of the central government. The Concurrent List includes subjects on which both the central and state governments can legislate, such as criminal law, marriage, and bankruptcy. The Parliament has the power to make laws on these subjects, and its laws prevail over any conflicting state laws.

Supreme Law-Making Authority
The Parliament of India is considered the supreme law-making institution because of the following reasons:

1. Constitution-Making: The Parliament has the authority to make and amend the Constitution of India, which is the supreme law of the land. Any changes to the Constitution require the approval of both houses of Parliament, as well as the ratification of at least half of the state legislatures.

2. Sovereign Authority: The Parliament represents the sovereign authority of the people of India. It is the highest representative body, elected by the citizens, and has the power to enact laws that govern the entire nation.

3. Judicial Review: The Parliament has the power of judicial review, which means that it can review and invalidate any law that is found to be unconstitutional. This power ensures that the Parliament can correct any legislation that goes against the principles and provisions of the Constitution.

Conclusion
In conclusion, the Parliament of India is the supreme law-making institution in the country. It has the authority to enact laws, amend the Constitution, and review the actions of the government. Its laws prevail over any conflicting state laws, making it the highest legislative authority in India.