This is false. The United States was doing relatively well before the Industrial Revolution, and when it his Britain it didn't take long for the technology to reach the United States.
At the onset on the war, in 1861 and 1862, they stood as relatively equal combatants. The Confederates had the advantage of being able to wage a defensive war, rather than an offensive one. They had to protect and preserve their new boundaries, but they did not have to be the aggressors against the Union :)
The correct option is A
The bureaucracy is necessarily hierarchical, first because of the iron law of the oligarchy and secondly because the bureaucracy grows adding more subordinate layers. As in the absence of a market there is no genuine proof of "merit" in government service to consumers, in a bureaucracy limited by rules, the hierarchy is often used as representative of merit. Increasing the hierarchy leads therefore to the promotion to the highest levels, while the expanded budgets take the form of multiplication of levels of ranks under you and expand your income and power. The bureaucratic growth takes place, therefore, multiplying the levels of the bureaucracy.