Answer is a type of State. Union is a type of State. Union is a synonym of North. North is a different concept from East. 
Flag is related to American. American is a type of Person. Person wants (to) Jewelry. Medal is a type of Jewelry. 
Answer --IsA--> State <--IsA-- Union <--Synonym--> North <--DistinctFrom--> East 
Flag <--RelatedTo--> American --IsA--> Person --Desires--> Jewelry <--IsA-- Medal 