in the aftermath of World War I and the Treaty of Versailles, America chose to try protecting its allies interest and peace across the world. One of the biggest initiatives was the Dawes Plan, which called for payment plans for Germany as a result of reparations during World War I in exchange for an end to the allies occupation.
Well the term theocracy means a system of government where priests rule in the name of god, so your answer would be the second. Priests were part of the ruling class.
