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The Guano Islands Act of 1856 never posited that Guano was going to become a state. Rather, it was to be taken possession of by citizens in the name of the USA, especially areas containing Guano deposits.
Certain parts of the island contained a form of naturally occurring fertilizer made from seabirds and bats. They were said to be very high in Nitrogen, hence relevant for agriculture.
The US currently owns 87.5 percent of the Guano Islands today.
Thus, the correct answer is C.
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