What kind of legislation can the Scottish Parliament pass?

The Scottish Parliament, established in 1999, operates under a system of devolved powers. Devolution means that certain powers have been transferred from the UK Parliament in Westminster to the Scottish Parliament in Holyrood. However, it's not a complete transfer of all authority. The key principle is that the Scottish Parliament can legislate on any matter that is *not* specifically reserved to the UK Parliament. These reserved matters, handled by Westminster, include things like foreign policy, defence, immigration, and certain aspects of economic policy like currency. So, while the Scottish Parliament has significant control over areas like education, healthcare, and local government within Scotland, its powers are defined by what's *left over* after the UK Parliament's responsibilities are accounted for. This is why the correct answer emphasizes that the Scottish Parliament can pass legislation on anything *not* specifically reserved. The other options are incorrect because they touch on areas that are explicitly the responsibility of the UK Parliament.