Genocide is defined as mass murder. It is done to eradicate a race, an ethnic group, or a nation.
C. The Mongol Sack of Baghdad in 1258 is an example of genocide.
Mongol soldier killed the citizens of Baghdad regardless if said citizen is a man, a woman, or a child. It was said that the death toll ranged from 200,000 to 1 million people of Baghdad resulting to it being depopulated.
The king is basically giving them a license to start a colony. It's like how you can't drive a car unless you have a drivers license, but with colonies.