Wish I knew history so I can help you
Ur answer is in fact E, The North was running out of ways to finance the war.
You are correct. What question did you need an answer to?
One problem was that some states didn't fully understand the meaning for it
Answer:
The correct answer is the South, because in the initial battles and skirmishes Southern Army managed to defeat the Union Army. Among those battles the most famous ones were the battles of Battle of Bull Run and Battle of Wilson's Creek in Missouri. The main reason for this is that the Southern Army had larger number of capable generals who managed to tactically defeat their opponents.
Explanation:
Union Army although had larger numbers didn't had such a strong leadership on the battlefield in the beginning. That is why in most of the first battles during the first year of the war they were defeated.