Final answer:
It is true that Capitulations gave foreign powers extraordinary legal powers in Egypt, undermining Egyptian sovereignty, and favoring European interests.
Step-by-step explanation:
The statement that Capitulations gave foreign powers extraordinary legal powers in Egypt is true. Capitulations were agreements that exempted foreigners from local law and subjected them only to the laws of their own country.
These agreements significantly diminished the sovereignty of Egypt by giving European powers, such as Britain and France, legal and economic privileges within the country.
This often resulted in influencing local politics and economy to favor foreign interests over domestic ones. It was a form of informal imperialism before direct control was established by the British in 1882.
correct option A. True.