Based on historical primary sources, the best choice is:
Jews were required to live separate lives, but were allowed to have some of their own laws.
During the Middle Ages in Spain, Jews often lived in segregated communities and had their own legal systems and customs, although they were generally subject to the overarching authority of Christian rulers. The relations between Jews and Christians could vary widely, with periods of relative tolerance and coexistence, as well as times of persecution and discrimination.