Final answer:
Muhammad Ali, the ruler of Egypt, funded its modernization through cotton production and trade with Britain.
Step-by-step explanation:
Muhammad Ali, the ruler of Egypt, funded its modernization by encouraging cotton production and selling the cotton to Britain. The profits from the cotton trade were used to modernize Egypt's army, establish a navy, build irrigation systems, and develop industries. Muhammad Ali also reformed the educational system and built colleges for military and medical education. The funding for Egypt's modernization did not come directly from the American Civil War but was a result of Egypt's own efforts and trade with Britain.