Propose, debate, pass.
News reports often say the government has launched a law. This may mean the cabinet has approved a draft. It does not mean the legislative process is complete.
MPs debate a draft in the Bundestag, examine it in committees and vote. The Bundesrat participates under constitutional rules. The relevant state parliaments deal with state laws.

The other three answers
The other institutions have different functions.
the government
Government may introduce draft laws. That initiative is not the same as Parliament passing them.
the courts
Courts apply and review law within their jurisdiction. They are not the parliament responsible for passing new laws.
the police
Police perform executive functions. They do not pass parliamentary legislation.
Further steps may follow the vote.
Federal legislation also involves steps such as certification and promulgation. The commencement date matters too. A draft, a legislative decision and law in force are therefore different stages.
Statutory instruments are another form of legal rule. They require legislative authorisation; this exam question concerns parliamentary legislation.
Article 77 · Basic Law ↗Draft ≠ passage ≠ entry into force.
The middle step determines the answer: Parliament passes the law.
Three words for this question
- der Gesetzentwurfdraft law
- A proposal for a new or amended law.
- beschließento pass or adopt
- To make a decision through the competent body.
- in Kraft tretento enter into force
- To become legally effective from a particular time.
