The correct answer is 3) Took advantage of native peoples.
One characteristic of the Encomienda system in Latin America was that it took advantage of native peoples.
Three characteristics of the Encomienda system were that Natives paid tribute to the conquistadors, conquistadors became trustees of the land, and the indigenous population got to keep their lands. Unfortunately, the Encomienda system was a form of slavery.
The Spanish Crown established the Encomienda system in its American colonies in the 16th century. The Spanish conquistador or "Encomendero," had a number of Native American Indians that helped him in different labors. The Encomendero protect those Indians and instructed them with religious teachings of Catholicism. The Indians had to pay tribute to the Spanish people.
With the Encomienda system, the Spanish crown defined the Indian's status in the new continent. The system –a form of slavery- was similar to the one they used in the Reconquest of Muslim Spain. A Spanish soldier received a grant from the crown of any number of Indians, and the soldier exploited them as slaves.