Option C is the correct answer because it accurately captures the main idea of the passage. It highlights how technological advancements in navigation during the sixteenth century transformed colonialism by enabling Europeans to establish settlements and exert political dominance over distant regions, including the Americas, Australia, and parts of Africa and Asia. Option A focuses on the displacement of indigenous populations, which is not the central point of the passage. While Option B mentions the expansion of territories and political power, it does not emphasize the technological advancements in navigation. Option D introduces the concept of British settlements, which is narrower than the broader context of European colonialism discussed in the passage.