The tobacco industry develops in North Carolina "around the cities of Winston-Salem and Durham."
The development of industry in North Carolina started after the American Civil War.
The development was pioneered by James Duke around 1865. The development began following the innovation of Bull Durham Smoking Tobacco by Bull Jack, which was later improved upon by Patterson.
James Duke started the American Tobacco Company during this period.
Hence, in this case, it is concluded that the correct answer is option D. "around the cities of Winston-Salem and Durham."
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