What were the terms of the Treaty of Versailles?

The correct answer captures the essence of the Treaty of Versailles, which concluded World War I in 1919. The treaty imposed heavy reparations on Germany, requiring the nation to pay substantial financial compensation for the war. This was intended to hold Germany accountable for its role in the conflict and to provide reparations to the Allied nations that had suffered losses during the war.

Additionally, the treaty redrew national boundaries in Europe, creating new nations and altering existing ones, which aimed to reflect ethnic and national identities more accurately in the post-war landscape. This redistricting was partly driven by the principle of self-determination, which was promoted by President Woodrow Wilson.

The other options present concepts that are either inaccurate or do not capture the central terms of the Treaty of Versailles. For example, the treaty did not propose the division of France among the Allies, nor did it establish a system of free trade among participating nations. While it did indeed establish the League of Nations, it came with numerous restrictions and limitations on membership and responsibilities, which is not reflected in the treatment of that option. Thus, the comprehensive nature of the reparations and boundary changes delineated in the selected answer are key components of the Treaty of Versailles.