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English geography lesson...
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For more on marking an answer as the "Best Answer", please visit our FAQ.It is not a theocracy. That term means a country governed by the clergy (e.g. Iran). Having a state religion established by law does not mean that the state is governed by that religion. Most of this is historical, dating back to the 17/18 C when catholicism was feared, not because of its theology, but because it represented continental powers which could seriously compromise the defence and interests of England.