I recently had to learn a lot about how the UK is divided, and would like to inform you of the easiest way to think of the levels of divisions.
There are 10 regions (most named after directions such as south west, north west), which are split up into county-level territories. Most county-level territories are counties, but some are unitary authorities. Counties are devided into districts, but unitary authorities are not. Some territories are as small as districts (district-level) but are not inside a county. These are metropolitan districts.
District-level territories (which can be/contain cities) are devided into wards.
Note that london doesn't really follow these rules.

Here's an example:
[house name]
[road]
Aberystwyth <-- village / town / city. Aberystwyth is a town, in this case.
Powys <-- county.
Wales <-- country.
UK <-- country.
Europe <-- continent.
'Europe and Russia'
'Eurasia'

Counties are what you call 'states'.

Edit: why did you have to post this, knowing that you play from the UK?

Edited 8/8/2015 07:36:37