Answer:
(C) Hangzhou was a vital trading city because it had foreign merchants and was also accessible by the Grand Canal for internal trade.
Step-by-step explanation:
This is the statement that best summarizes what the passage states about the city of Hangzhou. In this passage, we learn about the success and popularity of this trading city. We learn that foreigners established themselves here, and that they sold foreign goods in the markets. We also learn that this city was accessed by the Grand Canal. The presence of large markets and crowds of people emphasize the vitality of this trading city.