Final answer:
The term derived from the Philistines who settled in the region formerly known as Canaan is the Levant.
Step-by-step explanation:
The term that takes its name from the Philistines, who settled along the Mediterranean Sea coast from Gaza to Joppa from 1300 to 1200 BC, and was formerly known as Canaan, land of Purple, is correctly identified as the Levant.
The Levant is a historical geographical term referring to an area in the eastern Mediterranean consisting of modern Israel, Jordan, Lebanon, Palestine, and Syria.
This region was known for its Phoenician inhabitants, notable for their purple dye made from the Murex snail, advancements in maritime technology such as the invention of the "bireme", and contributions to the alphabet used by many European languages today.
The Philistines, part of the "Sea Peoples", were one of the groups that settled in the region after the Late Bronze Age Collapse, and their conflicts with the early Hebrews are well-documented in historical and biblical accounts.