Final answer:
The Great Compromise, also known as the Connecticut Compromise, created a bi-cameral legislature consisting of the Senate and the House of Representatives to balance the interests of both small and large states.
Step-by-step explanation:
The compromise that created a bi-cameral legislature is known as the Great Compromise, or the Connecticut Compromise. This fundamental agreement played a decisive role in the final structure of the United States government. The Great Compromise was proposed to resolve the disagreements between smaller and larger states during the Constitutional Convention of 1787. It resulted in the creation of two legislative chambers: the Senate, with equal representation for all states, and the House of Representatives, with representation based on each state's population. This two-chamber system corrected the weaknesses of the unicameral legislature under the Articles of Confederation and balanced the interests of states with varying populations.