Final answer:
King Louis XVI highlighted France's financial troubles in his call for the Estates General, due to debts from past conflicts and the American Revolution, leading to resistance from the Third Estate and the creation of the National Assembly.
Step-by-step explanation:
In 1789, King Louis XVI referred to the severe financial difficulties France was facing in his letter regarding the convocation of the Estates General at Versailles. Debt problems from the Seven Years War and supporting the American Revolution exacerbated the fiscal crisis, compelling the monarch to call the Estates-General to raise revenue. The gathering, which had not convened since 1614, was viewed as an opportunity to form a parliamentary monarchy. However, King Louis XVI faced resistance, especially from the Third Estate, which demanded a fairer voting system and refused the traditional one vote per estate system, considering they represented a much larger portion of the population. This resistance led to the formation of the National Assembly, escalating tensions, and eventually became one of the key precursors to the French Revolution.