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Settle a Dispute

How to resolve a dispute before it gets taken to a decentralised court
If a community member challenges a proposal you've made, you'll be able to see this in the Deposit Manager view -- the status of the proposal will be marked as Challenged.
Click on the proposal in question. You should see that you are able to either accept a settlement or raise the dispute to Celeste. Take note of the time remaining in the SETTLEMENT PERIOD

What is the Settlement Period?

When your proposal has been challenged you have a limited amount of time to choose your course of action. This duration of time, the Settlement Period is set by the Garden Summoner. If you don't take any action before the time runs out then part or all of your proposal deposit will be forfeit to the challenger and your proposal will be taken down.
Accept Settlement or Raise to Celeste, the choice is yours.
Click on Accept settlement to view the challenger's argument
This text is for demonstration purposes. Neither 1hive nor Gardens has an official stance on NASCAR.. yet.

Settling

If you believe the challenger has a point -- in particular, if you believe your proposal violates your community's covenant -- you can accept the settlement. Accepting a settlement is akin to paying a small fee and withdrawing your proposal.

What is the Settlement Offer?

The Settlement Offer or "AMOUNT THAT WILL BE SLASHED" on the UI, is the fee you pay to the challenger and is also the amount forfeit if you don't respond to the challenge before the Settlement Period ends.
The alternative is to raise the dispute to Celeste.