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Below are the choices that can be found elsewhere:
It led to a buildup of military force and the establishment of the navy.
<span>It laid the groundwork for a war between the states. </span>
<span>It caused both Spain and France to build alliances with the United States. </span>
<span>It set the stage for a government policy rejecting foreign involvement.
</span>
The answer is "It set the stage for a government policy rejecting foreign involvement. "
Varilla was made the American ambassador for Panama as compensation for his financial assistance to the rebels. He and U.S. Senator John Hay drafted a treaty between Panama and the United States, which was ratified by the Panamanian government in 1903 and by the United States in 1904.
From this United States
http://www.cotf.edu/earthinfo/camerica/panama/pctopic2.html