A political system having more than one level of government can be described…

A federal system of government divides political power constitutionally between two or more levels of government — typically a central/national government and one or more state or regional governments — with each level holding independent authority over specified subjects, rather than all power resting with a single tier.

The description in the question — a political system having more than one level of government — is exactly this arrangement of power shared and divided across levels, so the system being described is a federal system.

• A secular system concerns the state's neutral stance towards religion and treating all faiths equally; it says nothing about how many levels of government exist.

• A liberal system reflects a philosophy of individual freedom and limited government interference; it too is unrelated to the number of governing levels.

• A republican system concerns how the head of state is chosen — an elected head rather than a hereditary monarch — which is also unrelated to the division of governmental levels.

Only the option describing shared, divided power across levels of government fits the description in the question.