What does the line of demarcation signify?

The line of demarcation signifies the boundary established in the late 15th century that divided Spanish and Portuguese territories in the New World, following the Treaty of Tordesillas in 1494. This treaty was a significant moment in history as it aimed to resolve conflicts between the two nations over newly discovered lands by granting Spain rights to lands west of the line and Portugal rights to lands east of it. Understanding this historical context is crucial, as it illustrates how colonial powers sought to manage and control new areas for exploration and exploitation.

While the other options refer to various maritime issues, they do not relate to the historical context of the line of demarcation. The distinction between inland and international waters, ocean currents, or fishing rights pertains to modern maritime law and practices rather than the historical agreements made by Spain and Portugal in the context of the New World exploration.