The correct option is this: INDIVIDUAL STATES COULD NULLIFY FEDERAL LAWS THAT DO NOT BENEFIT THEM.
Nullification crisis occurred in USA between 1832 and 1833, during the time that Andrew Jackson was occupying the office of the president. The crisis was between the federal government and the South Carolina government. The crisis began when the south Carolina government declared that the federal tariff of 1828 and 1832 were unconstitutional and void within the state of south Carolina. John C. Calhoun, who was the vice president during this period and who came from south Carolina was of the view that, the federal government existed at the will of the state and therefore the state can declare unconstitutional and void any federal law that is detrimental to the health of the state.