Of the choices given in this question, the best answer is C.

A is a plausible answer, but is not correct.  The Bank of the United States was weakened badly but was not destroyed.  Cotton prices did crash, but not as a result of the bank’s problems.

B is less plausible.  There was inflation associated with the Panic of 1819.  However, there was no series of slave rebellions that came out of this panic.

This leaves only C.  The panic did affect the different regions differently with the contraction of credit tending to hurt the South more than the North.  This helped to emphasize tensions between the two regions.