Final answer:
The term 'Indian' pertains to ethnicity and 'peasant' pertains to an economic and social class. 'Indian' is a term with historical legal significance but is sometimes rejected for its inaccuracy. 'Peasant' refers to rural agricultural workers typically with limited land and resources.
Step-by-step explanation:
The meanings of the terms 'Indian' and 'peasant' differ significantly. The term 'Indian' refers to an ethnic group, particularly when used historically within the United States to describe its original inhabitants. This term is heavily rooted in the legal and political history concerning Indigenous peoples. However, it is considered a misnomer as the name derived from Christopher Columbus's mistake, believing he had reached India. Over time, many who would historically be categorized as 'Indian' have opted for identification by their specific tribal names instead, considering 'Indian' to be an imposed term.
On the other hand, 'peasant' describes a social and economic class rather than an ethnicity. The term historically refers to rural, subsistence-based agricultural workers with limited landholdings and is connected to internal migration patterns spurred by industrialization. Peasants are distinct from farmers in that they usually produce a limited surplus and are involved in economic relationships that are often exploitative.
Therefore, the correct answer to the student's question is A) 'Indian refers to ethnicity, while peasant refers to occupation.'