The correct response is:
Sherman's committee proposed the creation of a two-house legislature where members of the House of Representatives would be elected by popular vote and members of the Senate would have two senators.
This arrangement, known as the Great Compromise or the Connecticut Compromise, balanced the interests of both small and large states by allowing representation in the House based on population (favoring larger states) while ensuring equal representation in the Senate with two senators per state (favoring smaller states).