What type of settlement is characterized by houses and buildings spread over a wide area?

The correct answer is characterized by houses and buildings that are spread out over a large area, which aligns with the definition of a dispersed settlement. In dispersed settlements, individual homes and businesses are situated far apart from each other, often surrounded by agricultural land or natural landscapes. This type of settlement is commonly found in rural areas where available space allows for greater distances between residences.

In contrast, urban settlements are typically more concentrated, with buildings and houses located close together due to high population density. Dense settlements also show a high concentration of buildings and infrastructure in a relatively small area, while suburban settlements usually have a mixture of both dispersed and urban characteristics, often situated on the outskirts of urban centers. Dispersed settlements, therefore, are distinct in their spread-out arrangement, making them the best fit for the question.