A process involving too much official formality

Answer: Option C

One word substitute is Red-tapism.

Nepotism: the practice among those with power or influence of favouring relatives or friends, especially by giving them jobs.
Diplomacy: the profession, activity, or skill of managing international relations, typically by a country's representatives abroad.
Red-tapism: the practice of requiring excessive paperwork and tedious procedures before official action can be considered or completed.
Bureaucracy: a system of government in which most of the important decisions are taken by state officials rather than by elected representatives.