Final answer:
Permanent settlements arose as a result of the shift from hunting and gathering to farming, marking the beginning of the Neolithic Revolution. The establishment of permanent settlements is most directly linked to the replacement of hunting and gathering by farming.
Step-by-step explanation:
The cause of people beginning to live in permanent settlements is most directly linked to the rise of agricultural practices. When human communities began to cultivate the land and domesticated animals, they were no longer dependent on hunting and gathering, allowing them to settle in one location. Thus, the correct effect of people living in permanent settlements is option A: Hunting and gathering are replaced by farming. This was part of the Neolithic Revolution that involved the transition to agriculture, leading to other profound societal changes such as labor specialization, the rise of markets, and the growth of towns and cities. Furthermore, these agricultural societies developed irrigation technology to maintain their crops, which was enabled by the stable conditions of their settled lifestyle.