Which countries increased battleship production, surpassing Britain's output by 1894?

The correct choice identifies France and Russia as the countries that increased battleship production, surpassing Britain's output by 1894. During this period, France was significantly expanding its naval capabilities as part of its national defense strategy, aiming to counter the perceived threats from Britain and other powers. Simultaneously, Russia was also modernizing and expanding its fleet in response to its own strategic needs and to assert its influence in the naval domain. Both nations recognized the importance of having a powerful navy to protect their interests and enhance their military stature, which led to a substantial increase in battleship production.

This context emphasizes the naval arms race of the late 19th century, where various nations were investing heavily in their naval forces as industrialization progressed and global tensions rose, making maritime superiority essential for national security and imperial ambitions. The competitive nature of this race meant that countries like France and Russia were compelled to invest in battleship production, leading to a surpassing of Britain's output, a nation known at the time for having one of the most formidable navies.