The correct answer is option 2: Different branches of Government.

The theory of Separation of Powers is a principle in governance that suggests the powers and functions of a government should be divided among different branches or institutions. This division serves as a check and balance mechanism to prevent the concentration of power in one branch, which could potentially lead to abuse of power or tyranny.

In a typical democratic system, there are three main branches of government: the legislative, executive, and judicial branches. Each branch has distinct powers and responsibilities. The legislative branch is responsible for making laws, the executive branch for implementing and enforcing laws, and the judicial branch for interpreting and applying laws.

By dividing powers between these branches, the Separation of Powers ensures that no single branch has absolute authority or control. This division aims to protect the rights and liberties of the citizens and promote a system of accountability and transparency.

It should be noted that while option 1 (Central and State Governments) may involve a division of powers, it does not specifically refer to the concept of Separation of Powers. Option 3 (the polity and the economy) and option 4 (state and local governments) are not directly related to the concept of Separation of Powers in governance.

Therefore, option 2,