During the early middle ages, only a few towns existed because

During the Middle Ages only a few towns existed because agriculture was everything, and with that being the foundation, naturally the majority of people did that, so more land was contributed to agriculture, versus towns (like nowadays.)

agriculture was the basis of the economy.

The correct answer is - B) Jerusalem.

Jerusalem has been a hot spot ever since the Jewish people were allowed to form a country after World War II. As the Jewish people moved in and expanded into what is now Israel, the effect was that the Palestinians were losing their territory, so that brought in a lot of conflicts.

One of the prime places for dispute and conflict was the city of Jerusalem. The reason for that was and still is, that Jerusalem is a sacred place for both the Judaism and the Islam, so taking control over it, or losing control over it, was of huge importance.

Even nowadays, the dispute is not settled, and the city itself is divided into a part where there's Israelis  living, and a part where there's Palestinians living.