The correct option is "Britain had a larger fleet of ships to carry arms than Germany."
The Neutrality Laws are a series of laws passed by the United States Congress in the 1930s in response to the growing conflict in Europe and Asia that would eventually lead to World War II. They were generated by the strong isolationist sentiment in the United States that followed its costly participation in World War I and sanctioned to ensure that the US was not again involved in external conflicts, especially in Europe.
The consequences of the Neutrality laws are generally seen as negative: they made no distinction between aggressor and victim, treating both as "belligerents"; and they limited the US government to help Britain against Nazi Germany, until the formal declaration of war in December 1941 made them irrelevant.