Final answer:
Option C is incorrect as it incorrectly states that President Washington negotiated a peaceful resolution to the Whiskey Rebellion; he actually suppressed the rebellion with a significant militia force.
Step-by-step explanation:
The Whiskey Rebellion was a significant event in the early history of the United States, occurring in 1794 as a result of a tax imposed on distilled spirits. This uprising by farmers in western Pennsylvania challenged the federal government's ability to levy taxes. Among the options presented in the question, option C is incorrect. It states that President Washington responded to the Whiskey Rebellion by negotiating a peaceful resolution, which is not true. In reality, Washington responded by assembling a massive militia force to suppress the rebellion, demonstrating that the national government had the strength and willingness to enforce its laws.