Final answer:
The (B) USDA is the federal entity that specializes in providing long-term loans on rural property, which aims to improve living standards in rural areas through affordable financing.
Step-by-step explanation:
The federal entity that specializes in providing long-term loans on rural property is the USDA (United States Department of Agriculture).
Entities like Fannie Mae and Freddie Mac are typically associated with broader housing finance and not specifically focused on rural properties, whereas the USDA, through programs such as the Rural Housing Service, specifically caters to the needs of rural communities.
The USDA's loan programs are designed to improve the quality of life in rural areas by making homeownership more accessible through affordable financing. HUD (Housing and Urban Development) is responsible for urban and suburban housing programs and is less focused on rural property lending.