1. We endorsed the settlement with the condition that no dispute occurred afterwards.

2. We endorsed the settlement with the condition that no dispute was arose afterwards.

3. We endorsed the settlement with the condition that no dispute arises afterwards.

It would be appreciate if anyone could tell me which is correct.

Out of the three options provided, the correct sentence would be:

1. We endorsed the settlement with the condition that no dispute occurred afterwards.

Explanation:
The sentence is using the past tense to describe an action that has already taken place ("We endorsed the settlement"). Therefore, the verb form in the dependent clause ("no dispute occurred afterwards") should also be in the past tense to maintain consistency. The verb "occurred" is in the past tense and matches the tense of the main clause ("endorsed").

The other two options are incorrect because they use inconsistent verb tenses. In option 2, the verb form "was arose" is not grammatically correct. Instead, it should be "arose", which is the past tense of the verb "arise". However, using "arose" breaks the consistency between the tense of the main clause and the dependent clause.

In option 3, the verb form "arises" is in the present tense. While it is possible to use the present tense for the dependent clause, it would imply a general or ongoing condition, which does not match the specific past action in the main clause ("We endorsed the settlement"). Therefore, option 3 is also inconsistent in terms of verb tenses.