Die Zusammenarbeit von Parteien zur Bildung einer Regierung nennt man in Deutschland …
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Official answer: B · Koalition.
When no party has a majority on its own, several parties form a Koalition (coalition) to govern together. A Fraktion, by contrast, is the group of one party's members in parliament.
Explanation by EUpassway, not official; the test itself is only in German.