Question

Terrorists in what nation were holding American hostages as the U.S. began selling arms to another nation?

Answer 1

Terrorists in Lebanon were holding American hostages as the U.S. began selling arms to another nation.

It refers to the Iran-Contra Affair. The Iran-Contra Affair consisted on a secret U.S. arms deal that traded missiles and other arms to free some Americans held hostage by terrorists in Lebanon, but also used funds from the arms deal in order to support armed conflict in Nicaragua. Consequently, the controversial dealmaking threatened to bring down the presidency of Ronald Reagan.

Answer 2

The correct answer should be Lebanon, and the question should be referring to the Iran-Contra Affair during President Reagan's term.