Complex sentence: Palau, the westernmost cluster of the Caroline Islands, instead opted for independent status in 1978, approved a new constitution and became the Republic of Palau in 1981, and signed a Compact of Free Association with the United States in 1982.
Split into simpler sentences: Palau, the westernmost cluster of the Carolines, instead opted for independent status in 1978. It signed a Compact of Free Association with the United States in 1982.