The best analysis of how the formation of the Libertarian Party was a result of the historical context of the time is:
C) The debate over how much power the central government should be given prompted a fear of a tyrant king and a fight against a controlling government.
This option captures the core principles of the Libertarian Party, which emphasizes limited government and individual liberty. During the time surrounding its formation, there was significant concern about government overreach and the balance of power, which directly influenced the creation of a party that champions personal freedom and minimal governmental control.