Final answer:
One merit of permanent settlement is the stability it provides in landownership. One demerit is the potential exploitation of the peasants by the landowners.
Step-by-step explanation:
Merit: One merit of permanent settlement is the stability it provides in landownership. With permanent settlement, land was assigned to individual landowners, giving them a sense of security and ownership. This system also encouraged the landowners to invest in improving the land and increasing agricultural productivity.
Demerit: One demerit of permanent settlement is the potential exploitation of the peasants by the landowners. Since the land was transferred to individual landowners, they had the power to set high rent and levy heavy taxes on the peasants, leading to their economic exploitation.
Learn more about Permanent Settlement