Final answer:
The XYZ Affair sparked strong anti-French sentiment in the United States after French agents demanded bribes and loans from American envoys, leading to the Quasi-War and contributing to the passage of the Alien and Sedition Acts.
Step-by-step explanation:
The XYZ Affair caused a strong feeling in America against France. This diplomatic incident occurred in 1797 when American envoys to France were approached by French agents, known as X, Y, and Z, who demanded a substantial loan for the French government, a large bribe for French officials, and an apology from the U.S. President before any negotiations could begin. The affair led to the Quasi-War, an undeclared naval war between the United States and France, and contributed to the enactment of the Alien and Sedition Acts. The Federalists used this incident to enact laws that targeted immigrants and the Republican press, demonstrating the turmoil and increasing partisanship in domestic American politics of the time.