Question

What does Lincoln mean by compensated emancipation?

Slave-holders are compensated for freeing slaves.
Slaves are paid to leave slave-holding states.
States are paid to increase slave-holding.
The military is compensated for hiring slaves.

Answer 1

Slave -holders are compensated for freeing slaves

Answer 2

Lincoln had in mind to give slave-holders some sort of remuneration for losing their slaves so the right answer is slave-holders are compensated for freeing slaves.