What does the Declaration of Independence signify?

The Declaration of Independence serves as a statement outlining the colonies' desire to be free from British rule. It articulates the philosophical and political reasons behind the decision to declare independence, including the ideas of natural rights and the social contract. By asserting the colonies' intention to sever political ties with Great Britain, the document reflects their quest for self-governance and the fundamental belief in the right to determine their own political fate. This significance is rooted in its role as a foundational text that not only marked the birth of a new nation but also laid the groundwork for democratic principles that continue to shape governance.

The other options do not accurately capture this key aspect of the Declaration. A financial agreement among colonies and a treaty ending a war both pertain to different types of agreements and negotiations that are not the focus of this document. Similarly, while the Declaration influenced future governance, it is not a law itself but rather a proclamation of intent. This essential understanding highlights why the choice that reflects the document's purpose in advocating for independence is the most accurate.