The only correct statement is: The literature of the Americas reflects the diversity of the people and cultures in each region.
It is not a homogenous literature, as those regions have had very different and diverse histories, social contexts, preoccupations. The North American literature developed during 18th and 19th centuries already, whereas the South American literature achieved world fame in the 20th century, especially with the advance of the so-called "magic realism" as its staple.