The answer would be C.
The Compromise of 1877, settled the intensely disputed 1876 presidential election. It resulted in the United States federal government pulling the last troops out of the South, and formally ending the Reconstruction Era.
Deregulation was a process of removing federal authority and regulations from certain industries in order to help them prosper more easily. Some industries boomed and some busted, most notable being the savings and loans industry with banks having an easier time to do their business with the people. Some industries weren't affected at all like the agricultural industry, most notably farmers.
Increased federal control--all of these expanded the economic power of the federal government.
Democrats believed in a stronger state government and a reduced federal government. Having economic control opened the door for the federal government to become a monarchy. Tariffs also hurt the South and the farmer which the Democrats tended to represent.
