Option A introduces British settlements, which is a narrower focus compared to the broader context of European colonialism discussed in the passage.
Option B, on the other hand, focuses on the displacement of indigenous populations, which isn't the central focus of the passage.
Option C mentions the expansion of territories and political power but fails to highlight the significance of navigation technology.
Option D is the correct answer because it accurately summarizes the primary theme of the passage. It emphasizes how advancements in navigation technology during the sixteenth century were instrumental in reshaping colonialism, allowing Europeans to establish settlements and assert political control over distant regions such as the Americas, Australia, and parts of Africa and Asia.
So, the correct option is (D): Technological advancements in navigation in the 16th century, transformed colonialism, enabling Europeans to establish settlements and exert political dominance over distant regions.