The correct answer is false.
It is false that before WW1 American theater and drama had grown hand in hand.
American theater and drama had received the influence of British drama. Before World War 1, the Vaudeville was the theatrical genre that was common in the scene. During World War 1, the theater industry faced economic problems because Congress had charged it with heavy taxation. This represented a hinder in the development of the industry. Artists and owners started a campaign against Congress decision to gain public support. So, theater and drama in America face some conflicts that did not allow them to go hand in hand in World War 1 years.