Final answer:
Option (b), During the 1960s and 1970s, tensions between America and Panama over the Panama Canal led to the negotiated peaceful handover of the canal back to Panama, orchestrated by President Carter despite significant domestic opposition.
Step-by-step explanation:
The relationship between America and Panama during the 1960s and 1970s was marked by increasing tensions and ultimately a diplomatic shift that led to the peaceful handover of the Panama Canal back to Panama. The historical context highlights U.S. involvement in Panama's independence and subsequent control over the Canal Zone, stemming from strategic military and economic interests highlighted by the support of Panama's revolution against Colombia and from the construction and management successes, including health advances against tropical diseases.
These events set the stage for the eventual transfer of the Canal Zone to Panama, starting with the signing of the Torrijos-Carter Treaties in 1977, facilitating a gradual handover process completed in the year 2000.
President Jimmy Carter's argument to return the canal centered on the absence of proper authorization from the Panamanian people to cede the Canal Zone to the United States, deeming it a necessity in compliance with international law recognizing the sovereignty of Panama over the Canal Zone. However, this move to relinquish control over the canal was met with significant opposition in the United States, where many viewed it as a relinquishment of American wealth and strategic military interests.