Final answer:
The term that defines an American-born descendant of Spanish settlers in Latin America is 'creole'. They were Spanish by legal status but could not hold high-ranking colonial or church positions, though they did control significant land and business interests.
Step-by-step explanation:
The word from the list that best fits the definition of an American-born descendant of Spanish settlers is d. creole. Creoles were individuals born in the Americas, specifically in Latin American colonies, who were of pure European, particularly Spanish, descent. While they were considered legal Spaniards, creoles faced certain restrictions such as not being able to hold certain colonial posts or church offices. However, they could serve in the army and had control over much of the land and businesses. Creoles made up a significant part of the society in Spanish colonies, being positioned under the peninsulares, who were Europeans born on the Iberian Peninsula, and above other social groups such as mestizos, mulattos, natives, and slaves.