We are expected to state the meaning of the underlined word. The underlined word is debacle and it means
To state the meaning of a chose word, it is important that we closely study the context wherein it was stated.
Since it was a tycoon that occurred, it gives the idea that something terrible causing great distress had happened.
This gives us the idea that the option that is nearest in meaning to the underlined word is, "a great disaster."
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