How does the supreme court serve as a referee in the federal system?

The Supreme Court serves as a referee in the federal system by interpreting the Constitution and resolving disputes between states and the federal government, as well as among states themselves. It ensures that laws and policies adhere to constitutional principles, maintaining a balance of power among the branches of government. By reviewing cases and issuing rulings, the Court can clarify legal ambiguities and set precedents that guide future decisions, thereby upholding the rule of law in the nation.