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It basically looks like they just want you to fill in the blanks on the template with something in your own words. For example it says 'This idea would make a good law or policy because ______________'. Why do you think it would? Perhaps you could say it would allow those who cannot afford internet access to be able to get it. Or maybe those who don't have the option for decent internet access could now have it. That part is strictly opinion based.
Next it says 'I spoke with _______ about this idea. He or she said that__________' . Like I said, it all seems to be sort of fill in the blank. At least it gives you an idea where to go. You would need to speak to someone about it now. Perhaps a parent or a teacher?
In terms of the part about the steps it takes to become a law/policy. You would have to defer to your text for that part and list the steps it says as there is likely specific steps they want you to list.
The final part requires you to research your local government. City/County. That is another part that is specific to you. Typically just look up your local governments website and see if it lists anything. If not, definitely ask a parent as they may know. I know I am not wherever it is that you are so I can't help much on that part.
All in all, it looks like some opinion and some research into how laws are made. I don't know your sister's grade level so I can't comment as to how much detail would be required but typically the higher the grade level the more detail your teacher will usually require and thought input into it.
Your welcome. Hope that helps some.