Correct answer: B) Voters lost faith in the Republican Party’s handling of Reconstruction.
Grant had granted positions in his administration to people he thought he could rely on, rather than choosing them based on their merits and qualifications. The poor governance and scandals included members of his cabinet as well as other government agencies. There is no relationship to the completion of the Transcontinental Railroad, as that project was nearly complete already when Grant took office as president. (His presidential term began March 4, 1869. The Transcontinental Railroad was completed May 10, 1869.)
Reform movements began to appear in response to the corruption in the Grant administration, not only in the Democratic Party, but also among Republicans. The Liberal Republicans were a faction that split from Republican Party in 1872, to oppose the reelection of Grant.
