The event, which contributed to an increase in Americans' mistrust of the government, was the event of Watergate Scandal in the year 1972. Therefore, the option A holds true.
The Watergate Scandal is regarded as one of the biggest political scandal in the United States' history, which had major inclusion of President Richard Nixon. The scandal came to the news of the public in 1974.
After the continued attempts of President Nixon to hide the attempts of burglary and abuse of the position of the American presidency, the people of America lost their trust in the federal government of the United States.
Hence, option A holds true and states about the significance of the Watergate Scandal.
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