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The correct answer to this question is C. The only other one that would make any sense at all is D.
The Panama Canal belonged to the United States from the time that the US built it in the early 1900s. The US owned the canal as well as an area on both sides of the canal known as the Panama Canal Zone. This state of affairs continued until 1977. At that point, Jimmy Carter negotiated a settlement in which the canal would be given back to Panama. Carter did this because he wanted a foreign policy based more on idealism than on raw power. The handover of the canal became complete in 1999. From then on, Panama has run the canal.
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