The correct answer is "Europe struggled to recover from a lost generation."
After World War I, the Germany economy was in ruins. This is because they were held responsible for the beginning of the war and were forced to pay reparations (as decided in the Treaty of Versailles).
On the other end of the world, the US had a booming economy right after World War I. The 1920's in the US was an era of economic prosperity in which individuals had more disposable income to buy goods/materials.
France and Great Britain still remain allies after this war, as they both have a common goal of recovering from the war and ensuring Germany does not gain significant political power.
This leaves the first statement. The "Lost Generation" is a phrase used to display how a significant amount of the population was lost during the war due to the high number of deaths in World War I.
Washington recognizes that it is natural for people to organize and operate within groups such as political parties, but he also argues that every government has recognized political parties as an enemy and has sought to repress them because of their tendency to seek more power than other groups
