Which of the following is the correct elaboration on the reason behind the name of the XYZ Affair?

Each letter represented the first initial of the French representatives' names.
The Americans referred to the French representatives as XYZ.
XYZ was the tribute demanded by the French government.
XYZ was the tribute demanded by the English government.

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B) The Americans referred to the French representatives as XYZ.

The three diplomats sent by Adams to France met up with three French diplomats, which Adams referred to as XYZ.

Which of the following is the correct elaboration on the reason behind the name of the XYZ Affair?  

The Americans referred to the French representatives as XYZ.

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