Most of the freedmen became sharecroppers of the landowners. Although they were promised wages, the freedmen ended up with more debts than they could pay. This economic opportunity turned out to be another form of servitude. The sharecroppers had to live on credit from the landowners until they were able to sell their cotton. Oftentimes they still owed the landowners because the latter charged high prices and interest which they collected out of the crop earnings at the end of the season. More often than not, this left the sharecropper with very minimal or no profit at all and they had to work off this debt the next season.
Although you have neglected to include the graph, it is possible to answer this question. The right answer is the first one: based on the graph, a conclusion that can be drawn about the textile industry is that textile factories employed more children during the mid-1800s, coinciding with a peak of high productivity. In fact, younger, and not older, children were increasingly employed as workforce in factories and mines during the first decades of the 19th century.
Britain didn't have enough settlements to enforce the claim.