I believe the answer is: C.Profits from the arms sold to Iran were used to fund the Contras in Nicaragua.
The main purpose of the funding that united States gave to the contras in Nicaragua was to help negotiating the release of several U.S. hostages which were caputred in their territory.
But united states' action caused many groups in that country to have high end weapons which resulted in chaotic middle east situation that we see today.
