The correct answer is B) to protect American factory owners against competition from British manufacturers.
Congress passed the Tariff of 1816 to protect American factory owners against competition from British manufacturers.
Henry Clay and James Madison created the American system, an idea to help American factory owners from British competition. After the war of 1812, British companies had large stockpiles of iron and textile products. So they could offer lower prices than American companies and people preferred to buy British products at better prices. This was not good for American companies. Enters Madison plan. The Tariff of 1816 increased British goods to protect the American industry.