Final answer:
Colombia rejected the deal from the U.S. to construct the Panama Canal, feeling the offered payment was insufficient. Roosevelt's underhanded support for Panamanian independence and subsequent treaty with Panama was controversial and costly, leading to eventual compensation to Colombia.
Step-by-step explanation:
The Colombian reaction to the United States' proposal to construct a canal through Central America was initially to hesitate and then reject the offer presented by President Theodore Roosevelt. The Colombians felt that the proposed payment, which was $10 million plus an annual $250,000 rental fee for the land across the Panama isthmus, was too low. This led to a diplomatic standoff, resulting in the Colombian Senate informing Roosevelt that there would be no canal. Roosevelt then pursued an underhanded strategy by supporting a Panamanian revolt, which led to Panama's independence. Soon after, the United States negotiated the Hay-Bunau-Varilla Treaty with the newly formed nation of Panama, thus acquiring the rights to build the Panama Canal.
The correct answer to the question is therefore, 'They felt that Roosevelt’s deal offered too little money.' The U.S. intervention sparked controversy and was viewed as an act of duplicity, costing the United States financially and damaging its prestige in Latin America. The aftermath had Colombia receiving compensation of $25 million for damages suffered due to the U.S. intervention, which was a strategic move to facilitate the building of the canal through what had been Colombian territory.