When Washington stated that the principle "honesty is the best policy" should be applied to foreign relations, he meant that it was important for the United States to be transparent about its intentions and commitments in international affairs. This aligns with the option:
There was no need to hide that the US intended to avoid permanent alliances in the future.
Washington emphasized the value of being straightforward in foreign relations while maintaining existing engagements, suggesting that clarity and honesty would serve the country's interests better than secretive or ambiguous dealings.