Which of the following countries is known for its extensive canals?

The Netherlands is renowned for its extensive canal systems, which are integral to its geography and history. The country's low-lying landscape has led to the construction of a vast network of canals that serve various purposes, including transportation, flood control, and irrigation. The capital city, Amsterdam, is particularly famous for its well-preserved 17th-century canal ring, which is recognized as a UNESCO World Heritage site. These canals not only provide a unique means of travel but also help manage the country's water levels, a crucial factor in a region that is largely below sea level.

In contrast, while Italy has some notable canals, such as those in Venice, it does not have the extensive canal network characteristic of the Netherlands. Mexico and Egypt also do not possess the same level of canal systems, with their water management strategies being quite different due to their geographical and environmental contexts. Therefore, the Netherlands stands out as the country most synonymous with extensive canals.