What type of government is characterized by leadership controlled by religious authorities?

The correct choice is theocracy, which refers to a form of government in which a religious authority holds power over state affairs. In a theocracy, the leaders are often viewed as divinely guided or as representatives of a deity, and the laws of the state are typically based on religious doctrine. This intertwining of government and religion can be seen in various historical and contemporary examples, such as Iran, where Islamic law shapes both governance and everyday life.

In contrast, democracy is a system in which citizens have the power to vote and influence decision-making, reflecting a more secular governance structure. Monarchy involves rule by a single person or a royal family, which may or may not involve religious elements but is primarily based on hereditary succession. Oligarchy is characterized by control by a small group of people, which can be based on wealth, family ties, or military power, and does not inherently link to religious authority. Hence, theocracy stands out as the correct answer due to its specific focus on religious leadership and law.