It’s a league or alliance especially of the confederate states. Basically a political union. Like back in 1800’s, for example the Union and Confederates in which the confederate believed in sectionalism and states rights. States rights for example are where states wanted the right to have more power and rights than the U.S. and federal government. And sectionalism where ones loyalty is in a particular state or region. In that you get confederacy, where states/regions join together for some sort of reason and in this case, if we’re talking about the U.S., then it was formed by seven slave states who had proclaimed their secession from the union. Sorry if this was complex. I hope you meant confederacy from American history. :)
These acts affected the lives of colonists because they were being treated as if they were still under the king’s rule. They had to house soldiers and pay taxes that went to the king although they weren’t living there anymore.