The settlers saw the right to take possession of western lands and use them as they saw fitting as an essential element of American freedom. Settlers paid no attention to Indian land titles and admonished the government to set a low price on public land or give it away and regularly occupied land to which they had no legal title. Numerous settlers are also concerned unregulated population of lands west of Appalachian Mountains would aggravate constant warfare with Indians and viewed frontier settlers as disorganized and lacking reverence for authority.
The answer is the 1st one. Hope it helps :)
The piece of legislation which created the basic unit of settlement in the territory of north of the Ohio River is the Ordinance of 1785
