How did the peace settlement following World War 1 pave the way for World War 2?

Well. The Peace Settlement that followed WW1 blamed the WHOLE war on the Germans. The Austrians and Serbians actually started it. Its rather complicated to explain the whole thing but, basically the Germans picked up the war and basically took it in the direction they wanted, but they did not START the war.

The Treaty of Versailles stated that the war was blamed on Germany, and so Germany had to pay money to all the countries they had invaded. It forced Germany to restrict the size of its army, and to give up its war machines to the Allies. Needless to say many Germans were ticked off.

Hitler used the Treaty of Versailles as a catalyst to fuel the peoples anger and to promote his own ideas. He also came into power because he promised the German people he could pull them out of the economic depression they were in. He followed through with what he said he would do.

*Interesting Fact

Hitler told the German people he was trying to become dictator, and they agreed because it was better than what the democratic government was offering.

Also during the peace treaty the Europeans did not pay much attention to Japan and china so they left unchecked aggressions to build up and soon lead to the invasion of Manchuria.