Australian Citizenship Practice Exam

The correct number of territories in Australia is two. These territories are the Australian Capital Territory (ACT) and the Northern Territory. The ACT is home to the nation’s capital, Canberra, and serves as the political center of the country, while the Northern Territory is known for its vast landscapes, including national parks and indigenous culture.

While some might confuse Australia's territories with its states, it's important to note that Australia has six states as well. The distinction between states and territories lies in their governance; states have their own sovereign governments, while territories are governed by the federal government to varying degrees.

In summary, Australia features two territories, which are significant for political and geographical reasons, and understanding this helps to clarify Australia's political structure.