Answer:
The answer actually is "C): tariffs and the size of state government."
John C. Calhoun was in favor of increasing the power of the state governments by granting them the possibility to nullify laws that they believed we're unconstitutional. This issue came to discussion due to the recently imposed "tariff of abominations" passed by congress, which imposed a 38% tax on imported goods in order to protect the industry of the northern states. According to Calhoun, this tariff had negative consequences for the southern states.
Daniel Webster strongly opposed this proposal and expressed his support to President Jackson in his efforts to protect the industry. He was in favor of maintaining the status quo of federal law over state law, restricting the power of the states.
If it's not then it's D.
