Question: "In terms of living things, what affect did the isthmus have?"  Context: "South America became linked to North America through the Isthmus of Panama during the Pliocene, bringing a nearly complete end to South America's distinctive marsupial faunas. The formation of the Isthmus had major consequences on global temperatures, since warm equatorial ocean currents were cut off and an Atlantic cooling cycle began, with cold Arctic and Antarctic waters dropping temperatures in the now-isolated Atlantic Ocean. Africa's collision with Europe formed the Mediterranean Sea, cutting off the remnants of the Tethys Ocean. Sea level changes exposed the land-bridge between Alaska and Asia. Near the end of the Pliocene, about 2.58 million years ago (the start of the Quaternary Period), the current ice age began. The polar regions have since undergone repeated cycles of glaciation and thaw, repeating every 40,000–100,000 years."  Answer:
The answer to this question is:
a nearly complete end to South America's distinctive marsupial faunas