Final answer:
The Iroquois Confederacy maintained peace through a system of checks and balances and diplomatic negotiations, rather than military or economic means. During the Revolutionary War, the confederacy experienced a split, with some nations allying with the British and others with the Americans.
Step-by-step explanation:
The government formed by the Iroquois Confederacy helped maintain peace primarily through diplomatic negotiations and a system of checks and balances, not through military dominance or economic sanctions. In the mid-16th century, the confederacy was formed by the Mohawk, Seneca, Onondaga, Oneida, and Cayuga tribes, later joined by the Tuscarora tribe, and they operated under a constitution that emphasized these governing principles. This political structure was noted for its influence on future American concepts of governance.
Regarding their stance during the Revolutionary War, the declaration of neutrality by the Iroquois Confederacy was not unanimous and did not stand throughout the war. Although initially declared neutral, the individual nations within the confederacy were free to choose their own alliances. The Mohawk, Cayuga, Seneca, and Onondoga eventually allied with the British, while the Oneida and Tuscarora sided with the Americans, causing a split within the confederacy.