The correct answer is option 2: Direct and Indirect.

In a direct democracy, citizens directly participate in the decision-making process. They have the power to vote on laws and policies themselves, either through direct voting or through decentralized decision-making bodies. This form of democracy is often seen in small communities or organizations where all members have an equal say.

In contrast, an indirect democracy, also known as representative democracy, is where citizens elect representatives to make decisions on their behalf. These representatives are chosen through a voting process, and they are responsible for representing the interests of the people. This form of democracy is used in larger countries where it is not practical for every citizen to directly participate in decision-making. The elected representatives form a legislative body that makes decisions and enacts laws.