Final answer:
The development of political parties led to the first contested presidential election in 1796, with the Federalist John Adams winning narrowly against Democratic-Republican Thomas Jefferson, which introduced an era of partisan politics in America.
Step-by-step explanation:
The development of political parties profoundly affected the election of 1796 by creating a formal division in American politics. The Federalist Party, led by John Adams, reflected Alexander Hamilton's vision for a strong centralized government and commerce-based economy.
In opposition, the Democratic-Republican Party, championed by Thomas Jefferson and James Madison, advocated for agricultural interests and states' rights.
The emergence of these parties meant that for the first time, the presidential election was a true contest between two competing political ideologies, giving voters distinct choices on the direction they wished for the country. The resulting election saw Adams win by a narrow margin, ushering in an era of heightened partisan tension.