[Deputy Secretary of Defense Quarles] reported that the Soviet launching [of a satellite] on October 4th had apparently been highly successful. The President asked Secretary Quarles about the report that had come to his attention to the effect that [the US] could have placed a satellite in orbit many months ago. Secretary Quarles said that the Army feels it could erect a satellite four months from now if given the order. The President said that when this information reaches the Congress, they are bound to ask why this action was not taken [sooner].

–Memorandum of Conference with the President,
October 9, 1957

What do these notes indicate about the relationship between the USSR and the United States?

The United States was busy building up nuclear arms to attack the USSR.
The USSR fell behind in the space race as the United States launched a satellite.
The United States was competing to keep up with the USSR in the space race.
The USSR was focusing primarily on the arms race with the United States.