The correct answer is (B).
Getting to the Answer: When asked why an author uses a phrase, read a few lines before and after to get a sense of what the author is telling his audience. In the second sentence the author states, "as a nation that never was." This suggests that the author is emphasizing that the U.S. has yet to become an official nation.
(A) Incorrect: the author states that the British defeated the Continental Army, which is the opposite of what this choice states
(B) Correct: this fits the idea that the U.S was not on official nation, that it was only "self-proclaimed"
(C) Incorrect: nothing around these lines suggests that the army expanded
(D) Incorrect: this is the opposite of the idea that the U.S. was only "self-proclaimed"
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