The correct choice that illustrates the impact of the 1763 Treaty of Paris on growing tensions between the colonists and the British government, eventually culminating in the American Revolution, 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 choice highlights the financial burden Britain faced after the war and how it led to increased taxation and regulation in the colonies, which contributed to growing resentment and tension between the colonists and British authorities.