The competition between Germany and Great Britain up until the outbreak of World War I was centered on

a naval race.

territory in the Americas.

religious differences.

a dispute over Morocco.

I believe the answer is: Naval Race

Since the beginning of the British Empire's establishment, The Royal Navy which belonged to the Great Britain has always been acknowledged as the best Naval army in the world.

In 1987, Admiral Alfred von Tirpitz from Germany challenged this notions by leading the research to create warships and submarines that can beat Royal Navy's, which lead to the Naval Race between the two nations.

The competition between Germany and Great Britain up until the outbreak of World War I was centered on a naval race. It was between 1906 and 1914 that created a huge friction between the Germany and Great Britain and it is seen as one of the causes of World War One.