Final answer:
Germany was held responsible for WWI and forced to pay significant reparations under the Treaty of Versailles, deeply impacting its post-war economy and contributing to future conflicts.
Step-by-step explanation:
The nation that was made the scapegoat and compelled to pay substantial war reparations for World War I was Germany. Under the Treaty of Versailles, Germany faced severe territorial losses, economic burdens through reparations that amounted to over $33 billion, and was forced to accept the 'war guilt clause' which placed full responsibility for the war on Germany, spurring future resentment and upheaval within the nation.
These punitive measures seriously weakened Germany's economic and political stability, thereby contributing to the turmoil that would eventually lead to World War II. Additionally, due to the reparations and loss of territories like Alsace-Lorraine to France, Germany experienced hyperinflation and a heavy strain on its post-war recovery. The war guilt clause in particular had profound psychological and diplomatic repercussions, greatly affecting German national sentiment and its future foreign policy.