The correct answer is true.
It is true that the German confederation was made up of thirty-nine independent states.
In 1815, the Congress of Viena established the German Confederation with 39 independent states. There were 35 monarchies and 4 free cities. But the Confederacy started to weaken early on due to many differences between the Austrian Empire and the Kingdom of Prussia, and internal conflicts of different cities that did not want to entirely compromise.