Here are the answers to your questions based on the challenges faced by the North and South after the Civil War:
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Which region had to rebuild its towns and railroads and industry?
South - The South sustained significant physical and economic damage during the war, requiring extensive rebuilding of towns, railroads, and infrastructure. -
Which region was more industrialized?
North - The North was more industrialized prior to and during the Civil War, with a more developed network of factories, railroads, and industries. -
Which region needed a new economic system?
South - The South needed to transition from an agricultural economy based on slavery to a new economic system that included wage labor and diversified industry after the abolition of slavery.