Answer: Peripatus shows characters of both Annelida and Arthropoda, so it is a connecting link between them.
Annelid characters: segmented, worm-like body, thin cuticle, unjointed parapodia-like legs and segmentally arranged nephridia.
Arthropod characters: tracheal respiration and an open circulatory system (haemocoel); its legs also bear claws.
Since it has characters of two different phyla, Peripatus is considered a connecting link between Annelida and Arthropoda, and it is an evidence of evolution.