The sentence describes Martha's fate: "Her potential unrealized, Martha was ultimately a victim of her environment." This opening establishes that her dreams were not achieved because of outside forces.

The blank must describe how those around her affected her, specifically by "insisting that she forsake her artistic dreams." They actively prevented, hindered, or stifled her potential.
- The relationship between the blank and the first clause is one of cause and effect: The environment [cause] her to become a victim with unrealized potential [effect].

Let's evaluate the options for words meaning "hindered" or "stifled":
- A. stultified: To cause to lose enthusiasm and initiative, especially as a result of a tedious or restrictive routine. This is a strong fit; her environment made her potential boring and irrelevant.
- B. assuaged: Made an unpleasant feeling less intense. This is the opposite of the intended meaning; they made her situation worse regarding her dreams.
- C. hampered: Hindered or impeded the movement or progress of. This is a very close synonym to "stultified" in this context, describing the act of preventing her progress toward her dreams.
- D. motivated: Provided a reason to act in a particular way. This is the opposite of the intended meaning, as she was forced to give up her dreams.
- E. spurned: Rejected with disdain or contempt. While her dreams might have been spurned, the sentence describes Martha being acted upon by others. This doesn't fit the context of limiting her potential.
- F. galvanized: Shocked or excited into taking action. This is the opposite of the intended meaning.

The two words that best fit the context of restricting or hindering her potential are stultified and hampered.

The correct choices are A. stultified and C. hampered.