Final answer:
The statement is true; 'General quarters' signifies that a ship's crew is called to their battle stations in the highest state of readiness for combat, which aligns with the references to battle in the provided text.
Step-by-step explanation:
The statement that 'General quarters is an all hands evolution–it is the highest state of readiness of the ship' is indeed true. This term, used predominantly in naval jargon, refers to a ship's crew being called to their battle stations as part of a state of maximum readiness for entering combat. In the text provided, the phrase 'We have not struck' indicates a refusal to surrender, and the description of the ship's guns firing signifies active engagement in battle rather than preparation to render quarters or surrender. The term 'General quarters' involves preparing for battle, possibly including sealing watertight compartments and arming weapons, ensuring that the vessel is ready to face any imminent threats.