Final answer:
The Israelites formed a theocracy when they settled in Canaan, governed by leaders under divine law and intensifying their monotheistic worship.
Step-by-step explanation:
When the Israelites settled into Canaan and became a nation, they formed a theocracy. This transition marked a shift from their former lifestyle and solidified their commitment to monotheistic worship. Theological leaders under the guidance of divine law governed the Israelite society. Their religious practices became even more distinct and intensified during and after their enslavement in Egypt, illustrated by Moses receiving laws from Yahweh and the stipulation that only Yahweh should be worshipped.
Archaeological evidence indicates the Israelites were settling in Canaan by about 1200 BCE. Monotheism became a critical hallmark of their culture, with the Bible recording how it evolved from the times of Abraham and Moses, eventually shaping into the structured religion known as Judaism.