The correct answer is 1) The development of fascism.
The policy of containment refers to an American foreign policy after World War II. During this era, America was trying to stop the spread of communism on a global basis. This shows that number 2 is incorrect.
Both Germany and Italy under Hitler and Mussolini did not have democratic institutions. In both of these countries, one political party had almost complete political power and citizens who dared to challenge this authority were killed or punished. This shows that number 3 is incorrect.
Lastly, religion was not a focus of either Mussolini or Hitler in their rise to political power. Their efforts were more focused on creating a political system in which they had all of the political power. This shows that number 4 is incorrect.