You did not include options but the most likely feature being shown by the image in question is that, in medieval Europe:
European rulers in the medieval period practiced feudalism which meant that even though the ruler was above everyone in their kingdom, local subordinates in the form of lords and nobles, held authority in their region.
These lords would then grant land to people to farm on them and the produce would then be taxed by the lords who would then give a portion of that to the ruler.
We can therefore conclude that there was decentralization in Europe in the medieval period with rulers delegating authority to local subordinates.
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