I believe the correct answer is D
They lose their highly educated citizens to the U.S.
1861 - Kentucky decides to side with Union in the Civil War after trying to remain neutral.
1875 - The first Kentucky Derby is held at Churchill Downs. 1904 to 1908 - The Black Patch Tobacco Wars take place in Kentucky.
1937 - The Ohio River floods causing extensive damage.
It seems to be "Rising Above the Gathering Storm: Energizing and Employing America for a Brighter Economic Future"