Final answer:
Early Portuguese and Dutch did not establish settlements in Australia because they prioritized other interests, such as dominating trade routes and found no strategic or economic incentives for settlement similar to those which drove the Dutch to settle in South Africa.
Step-by-step explanation:
The early Portuguese and Dutch explorers did not decide to create settlements in Australia for a few reasons. Unlike the British, who eventually claimed Australia and used it as a place to send convicts to relieve prison overcrowding, the Portuguese were focused on dominating trade routes in the Indian Ocean, and therefore did not prioritize creating settlements in Australia. The Dutch, despite visiting and mapping parts of the Australian coast, named 'New Holland,' also did not establish permanent colonies. This could be attributed to a lack of interest in settlement compared to their interests in other areas, and the absence of the strategic or economic incentives that drove the settlement of South Africa as a supply station for ships headed to the East Indies. Therefore, the correct answer to the question of why early Portuguese and Dutch explorers decided not to create settlements in Australia is 'A. They didn't think the land was suitable for settlement.'