During the early twentieth century, the German imperial parliament increased the budget for the modernization of the fleet and technology of the Imperial Navy, because they had in mind the possibility of a naval war being waged against Great Britain. This fueled an arms race in which the main ships to be developed were battleships and submarines to compete against the Royal Navy. This arms race was also useful to the German Navy to block the entry of resources to Great Britain. Finally, this large investment generated a deficit in the German budget, which caused a decrease in resources for this matter and the end of the arms race. So, the correct answer is B. Germany.
Prior to World War I the nation that challenged Great Britain´s supremacy of the seas was Germany. The German Admiral Alfred von Tirpitz, under authority of Kaiser Wilhelm passed laws in order to make more and more large battleships.
