Final answer:
Residents of the German territories within the Holy Roman Empire were notably resentful of the Catholic Church's taxes and influence because their decentralized rule contrasted with the strong central monarchies of France and Spain.
Step-by-step explanation:
In the early 1500s, the resentment towards the Catholic Church over its taxes and influence was particularly pronounced in the German lands that comprised part of the Holy Roman Empire. This area was not a unified state with a strong central monarchy, rather it was made up of numerous territories ruled by various princes, dukes, and electors, who were less able to resist the papal taxes and authority, as compared to the centralized governments of Spain and France.
The correct answer to the student's question about which European state's residents were particularly resentful of the Catholic Church because its relatively weak central government was less able to resist papal taxes and influence, is C) Germany.