Was the Protestant Reformation partly responsible for the rise of literacy in post sixteenth century Europe?

Yes, very much so, for many different reasons. The press spread the 95 thesis everywhere. This created allot of "news" thus created allot of interest. Along with that, the subject matter was of vital importance. Everyone wanted to read it AND the subject matter was going against the majority of the authorities which sparked much debate and thinking which promoted a renewed vigor in academia.