While "anarchy" and "monarchy" are both types of government, they do not convey the same meaning as "democracy." The word closest in meaning is egalitarian.

The “nomenclature” of a given discipline is the set of terms specific to it. For example, one can speak of the “binomial nomenclature” that is used to describe animal species (e.g. man is homo sapiens). One can thus say that a given “nomenclature” is the set of “terminology” for a discipline. This is the best option among those provided.

The word “narrative” comes from the Latin for “to tell” as in “telling a story.” The word “storyteller” is close to this—to “narrator” not “narrative.” Although one might think of the enumeration of things as being a sort of narrative, it is more proper to say that a “chronicle” provides a narrative. A “chronicle” is an account of historical events told as a narrative according to time. The word “chronological,” meaning “related to time” is related to “chronicle.”

The “milieu” of something is the “middle location.” A given “milieu” is the “midst” in an expression like “in the midst.” Therefore, we call a thing or person’s “milieu” his or her environment. For instance, we may speak of the “political milieu” of a given family that has strong ties to political factions, or we may use “milieu” to indicate the general socioeconomic environment in which someone lives.

The word altercation comes from the Latin for “to dispute or argue.” It means roughly the same in English. For example, one might say, “After the large altercation between the two men, their friends decided not to invite them to the party, fearing that they would argue in public and disturb the peace of the gathering.”

"Nostalgia" means sentimentality or a fondness for the past. "Ailment" means an illness or affliction. "Hardship" means a difficulty or personal burden. "Remedy" means a cure or solution. "Prudence" means caution or carefullness. 

"Philanthropy" and "charity" both mean humanitarianism or generosity. "Avarice" means extreme greed. "Quiescence" means inaction or quiet. "Diatribe" means criticism or tirade. "Improvidence" means carelessness or neglect.

Since "anomaly" is a noun which means "a deviation from the norm or what is expected," we need to find another noun that means "a deviation from the norm."  While "tangent" may look like a potentially correct answer choice, "tangent" means "a line that touches a curve at one point, but does not intersect it," or "a completely different line of thought or action." So, while "tangent" can be used in a context where it means a deviation from the norm of a conversation, it does not itself mean "deviation from the norm," so it can't be the correct answer. "Incongruity," however, means "something that is strange because of not agreeing with what is usual or expected," so it is the correct answer because of the given answer choices, it is closest in meaning to "anomaly."

Since "chagrin" is a noun that means "distress or embarrassment at having failed or been humiliated," we need to pick out another noun that means something like "distress" or "embarrassment." While "simper" may sound like a promising answer choice because "chagrin' sounds like "grin" and "simper" can be defined as "an affectedly coquettish, coy, or ingratiating smile or gesture," this doesn't match the actual meaning of "chagrin," so it can't be the correct answer. Of the listed answer choices, "dissatisfaction" comes closest to matching the meaning of "chagrin, so it is the correct answer.

Fortitude means strength of mind or determination.  The best answer choice is resilience since someone with fortitude has strength even in the midst of difficulties.