The correct anwser is C) Portugal colonized Brazil, and other nations backed privateers and explorers.
After signing the Treaty of Tordesillas in 1494, Portugal and Spain divided the new lands with a meridian which allowed Portugal to establish in part of what it is nowadays known as Brazil. Shortly after, Portugal began his expansion to the rest of Brazil.
Moreover, other nations such as Great Britain and France began to sack the Spanish ships. They did so through privateers, whose main aim was to attack the Spanish ships that were carrying precious metals from the colonies to Spain. The privateers took part of the loot for themselves and the rest remained for the respective Cronws.