Final answer:
The Balkan Peninsula was known as the 'powder keg' of Europe due to political tensions and alliances, culminating in the outbreak of World War I.
Explanation:
The region referred to as the 'powder keg' of Europe in the early 1900s was the Balkan Peninsula. This term stemmed from the political turmoil and tensions in the Balkans, especially due to the complex web of alliances and rivalries among European powers.
The assassination of Archduke Franz Ferdinand of Austria-Hungary in Sarajevo in 1914 ignited the chain of events leading to World War I, further emphasizing the volatility of the region during that time.
The Balkan region's strategic importance and historical grievances played a significant role in escalating conflicts that eventually engulfed the major powers in a global war.
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