Step 1: Understand settlement patterns
Settlements are formed based on the physical geography of a region. The arrangement or layout of houses and other structures determines the settlement pattern.
Step 2: Apply geographic logic
Lakes have a naturally round or oval shape. Human settlements around lakes usually conform to the lake’s boundary.
Step 3: Evaluate the options
Rectangular, Square, and Linear patterns are mostly seen along roads, rivers, or planned towns.
Circular settlements form naturally around a central feature — in this case, a lake.
Hence, the correct answer is Circular.