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A
Federalist and Whig
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B
Democratic and Republican
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C
Liberal and Conservative
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D
Labor and Tory
Why this is the answer
The two major political parties in the United States are the Democratic and Republican parties. This is a 65/20 civics question. These two parties have dominated American national politics for well over a century, though other minor parties also exist and participate in elections. The civics test asks applicants to identify these two major parties by name. The Federalist and Whig parties are historical parties no longer active, so they are incorrect. Knowing the names of the two current major parties is standard system-of-government content on both versions of the test.
Source: USCIS Civics Question 45 (65/20) — Two Major Parties