Encoding: In psychology, the term "encoding" is also written as memory encoding and is described as the very first step involved among the three different stages of the memory process. However, to create a specific memory, the brain of a person must encode or process a piece of information or new facts into a "storable form" in order to recall it whenever required or necessary.
In the question above, the given statement signifies the encoding process.
Britain’s debt from the French and Indian war led it to try to consolidate over its colonies and raise revenue through direct taxation generating tensions between Great Britain and its North American colonies.