"It represented a major setback for the federal government due to public suspicion."
Obviously Watergate was huge and it had the public worrying that they could not trust their government anymore.
As far as I can tell, both B. (declaring that the U.S. State Department had been infiltrated by communists) and C. (holding hearings about communist ties to the entertainment industry) are correct.
I think its letter B but im not 100% sure of it
Answer: the states had too much power, and the natl. government didn't have enough power
