The correct answer is option 3, "Agreement between the Centre and the States." In a federal government, power is divided and shared between the central government and the states or provinces. Option 1, "Command by the Centre," implies a more centralized form of government where the central government has strong control over the states. Option 2, "Appeal from the States," does not correctly describe the nature of a federal government as it suggests that the states have the power to appeal decisions made by the central government. Option 4, "Single Party Rule," does not accurately represent the nature of a federal government as it focuses more on the political party in power rather than the distribution of power between the central government and the states.