Final answer:
The treaty that ended the Third Crusade ensured freedom of trade between Europeans and Muslims and safe passage for Christian pilgrims to Jerusalem, despite the city remaining under Muslim control.
Step-by-step explanation:
The peace treaty that ended the Third Crusade, which occurred from 1189 to 1192, resulted in a number of conditions, one of which was the continued control of Jerusalem by Muslim forces. However, the treaty, negotiated by Richard the Lionheart and Saladin, allowed for freedom of trade between Europeans and Muslims, as well as safe passage for Christian pilgrims to visit the holy sites in Jerusalem. The treaty marked a significant moment in crusader history because, even though it did not accomplish the return of Jerusalem to Christian control, it established a rare period of peace and cooperation in the region.