When you rearrange a word you simply change the order of its letter in order to make a new one. In this case, they are asking you to change the order of CATERER letters to make a word, using the same letters, not adding or leaving one left, that means row of houses all joined together.
With the letters the word caterer provides, we can form the word TERRACE that suits with the meaning asked.
The letter 'e' The last letter of time is e & the first letter of eternity, again is e. Every week has 4 e's & there's only one e in "a thousand years"