Final answer:
This is an example of allopatric speciation, where the Grand Canyon has geographically separated squirrel populations, leading to the rise of two distinct species.
Step-by-step explanation:
The scenario described, where two squirrel populations have become reproductively isolated due to the formation of the Grand Canyon, is an example of allopatric speciation. Allopatric speciation is a form of speciation that occurs due to geographic separation, preventing the free flow of alleles between two populations and leading to independent evolutionary paths.
Over time, different selective pressures and natural selection lead to the divergence of the populations, until they become distinct species. This is exemplified by the different species of squirrels found on the North and South rims of the Grand Canyon, which descended from a common ancestor but now display distinct physical characteristics and cannot interbreed with each other.