In many cases, the US would set up "puppet governments" to administer its new found territories, since many of these territories--such as Puerto Rico and the Philippines--were too far away for direct governance.
The correct answer here is the last option.
The purpose of the Declaration of Independence in general is used to announce the rejection of the British rule, but this excerpt in particular is used to show that the thirteen colonies have every right to rebel against the King as he does not have the best interests of the colonies in mind. So they are completely justified in renouncing his rule.
So we'll start be explaining what a state and a municipality are. A state is pretty commonly known. Its a division of land in the US which its own government. A municipality is a city within a state. So lets explain the relationship. This changes depending on the state. You could think of it as a chain of command with the governor on top. He controls the entire state's budget. This has an effect on every city within the state.
What is what thing all about? There is no attachment and such...
