The correct choice that illustrates the impact of the 1763 Treaty of Paris on growing tensions between colonists and the British government is:
D. The diagram shows a sequence of developments. Massive increase in British debt due to the war; Increased enforcement of tariffs and taxes by the British in the colonies; Smuggling of products by colonists to avoid taxes and tariffs despite economic prosperity.
This sequence directly connects the result of the war (the British debt) with subsequent British actions (enforcement of taxes and tariffs), which led to colonial resistance and eventual smuggling. This illustrates the tension that developed between the colonies and the British government, playing a significant role in the events leading up to the American Revolution.