After the sentence, a list of possible interpretations of all or part of the sentence is given. Choose the interpretation that you consider most appropriate...

After the sentence, a list of possible interpretations of all or part of the sentence is given. Choose the interpretation that you consider most appropriate for the sentence.
The peace meeting nipped the crisis in the bud. This means that

Answer Details

The most appropriate interpretation of the sentence is that the crisis was averted. "Nipped in the bud" is an idiomatic expression that means to stop something at an early stage before it becomes a bigger problem. So, the sentence means that the peace meeting was able to prevent the crisis from getting worse by addressing it early on.