The correct option is 1)i.e. The Confederates. Explanation Reading the passage carefully we find that:
The last line of the passage clearly indicates "Oh God! Please have mercy on Col James, even though we are on the opposite sides, please stop further bloodshed as this may lead to another round of guerrilla attacks by the defeated but enraged French forces."
The above-mentioned lines state that the French forces had lost.
The passage in the first line also mentions the word 'Capitulate' meaning 'surrender'. In view of both these sentences, it can be ascertained that the French had lost and Confederates had won.