Correct Answer:
C. Canada
Explanation:
Alaska & Texas are U.S. states; Canada is a separate country. Paraguay is not considered because it is a country in South America, whereas the question asks specifically about "American states," meaning states of the United States of America.
Alaska → U.S. state ✅
Texas → U.S. state ✅
Canada → country, not a U.S. state ✅ (Correct Answer)
Paraguay → country, but the question focuses on U.S. states, so Canada is the best answer since it is geographically closer and commonly confused with the U.S. context.
In short, “American state” refers only to a U.S. state, not any country in the Americas.