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California sought immediate statehood as a free state as a direct result of the Gold Rush. The influx of people drawn by the prospect of gold led to a rapid increase in California’s population. This dramatic population growth created a significant push for statehood, as new residents wanted the rights and regulations that came with being a state rather than remaining a territory with stricter federal control.

During this period, there was a national debate regarding the expansion of slavery into new territories and states. California's desire to enter the Union as a free state played a crucial role in the larger conflict between free and slave states in the pre-Civil War era. This aspiration for statehood was met with both support and opposition, eventually culminating in the Compromise of 1850, which granted California admission as a free state.

The other options do not accurately reflect the historical context following the Gold Rush. California did not become a slave state or remain a territory for decades; instead, it transitioned quickly to statehood. Similarly, the notion that California's population significantly decreased contradicts the substantial increase in population that the Gold Rush stimulated.