What happened after the pope set up the line of demarcation in 1494 to keep the peace between Spain and Portugal?

The Treaty of Tordesillas, which was the name for this Papal Agreement adjudicating the borders of the world that Spain and Portugal could colonize effectively prevented war between the two states.

At the time, the size of the South American continent was not completely known, and though the Spanish came off better in the total extent of territory, Portugal got the largest single piece of the pie--Brazil. Today Brazil is by far the largest Portuguese-speaking country in the world.