Question

What compromise ended the Third Crusade?

Both Muslims and Christians withdrew from Jerusalem, declaring it to be a neutral city.
Muslims continued to rule Jerusalem, but they allowed Christian pilgrims free access to the city.
The Muslim ruler of Jerusalem decided to convert to Christianity as a sign of good will.
The Crusaders agreed to pay ransom to Muslim forces and then depart from the Holy Land.

Answer 1

Muslims continued to rule Jerusalem, but they allowed Christian pilgrims free access to the city. (This was settled by the 1192 Treaty of Jaffa/Ramla between Richard I and Saladin.)