The Line of Demarcation gave all lands west of the line to
a. the Netherlands, and lands east of it to England.
b. England, and lands east of it France.
c. Portugal, and lands east of it to Spain.
d. Spain, and lands east of it to Portugal.
The Line of Demarcation gave all lands west of the line to "d. Spain, and lands east of it to Portugal" which was a major reason why colonization turned out the way it did.