The problem with answer choice C is that the passage gives us no information about recodifying the constitution. What were the actual effects of the European's interpretation of wampum? The first paragraph tells us that the Europeans only used wampum as a currency. This doesn't mean the Iroquois saw it that way. They may have used it as currency, but the passage does not suggest that currency then became its only purpose. The strongest evidence against C is the last sentence of the passage. "Although the wampum symbol system had a limited lexicon, it served to effectively frame and enforce the law of the confederacy for hundreds of years." This suggests to me that the arrival of Europeans did not put an end to the political purpose of wampum belts.
B has much stronger support in the last paragraph. What led to the invention of wampum belts (Line 43)? It was the formation of the Confederacy, which supplied the "major impetus" for making wampum a deliberate system of political symbols. The string wampum were not complex enough for this purpose, so they were put together to form belts.
