Based on the passage provided, the events can be arranged in the correct order as follows:
- Adams became President and faced difficulties due to the war between the French and British, causing intense partisanship in the United States.
- The French Directory refused to receive the American envoy and suspended commercial relations.
- Adams sent three commissioners to France.
- Word arrived that the French Foreign Minister Talleyrand and the Directory refused to negotiate unless a substantial bribe was paid.
- Adams reported the insult to Congress, leading to the Senate printing the correspondence referring to the Frenchmen as "X, Y, and Z."
- Hostilities began at sea, with American shipping being almost defenseless against French privateers.
- By 1800, armed merchantmen and U.S. warships were clearing the sea-lanes.
If you select the above sequence and place it in the correct order, it should accurately reflect the events as described in the passage.