The NW ordinance of 1785 is what your looking for I think
Economic sanctions are meant to "put in line" a foreign government that is having, to make it simple, a "bad behavior". They usually happen under the legal boundaries of international Treaty and the United Nations.
Although it might change the way that a government acts, those sanctions usually involve suspensions of international trades and that might end up hurting the local population.
The correct answer is:
Economic sanctions against foreign governments sometimes hurt foreign citizens
They are right
Hope this helps good luck