One of the Largest Nonfederal Government Organizations in the United

One of the largest nonfederal government organizations in the United States is the Port Authority of New York and New Jersey.It oversees airports, bridges, tunnels, and train systems, and developed New York City's One World Trade Center.It has its own police force.Governors of each state appoint board members.If states are supposed to be independent, how does this organization exist?

A) Port Authority is an illegal organization that is only allowed due to the economic power that New York wields.
B) This government was allowed through an interstate compact, created with the consent of Congress, as the Constitution allows.
C) The organization's founding came before ratification of the federal Constitution, which would allow it to bypass the Constitution.
D) Presidents are allowed to grant waivers for cooperation through executive orders, bypassing Congress.