What do the stars on the flag represent?

The stars on the flag of the United States represent the states in the union. Each star signifies one of the 50 states, symbolizing their equal status and unity as part of the country. The flag's design reflects the nation’s federal structure, where power is distributed between national and state governments, and each state has a distinct identity while also being part of a larger collective.

In the context of the other options, the representation of capitals or territories does not apply here, as the stars are not meant to symbolize specific locations or regions; rather, they denote individual states. National holidays, while significant in American culture, do not have a direct representation on the flag at all. Therefore, the correct interpretation of the stars being a representation of the states defines the flag's symbolism in relation to the governance and unity of the country.