In the last grievance of the declaration of independence what does "He has excited domestic" mean?

Explanation:

You can't understand this grievance without the next word. It is a very famous part of the declaration. The next word is violence.

Now read your quotation.

He has excited domestic violence ... Jefferson meant that George has done nothing good as far as America is concerned.  

In other words, he has made Americans (who at the time were British Subjects) enemies the inhabitants of those already there on the frontiers.

excited means make people act.

domestic means those living in America or the citizens of any country. Domestic is an adjective describing the kind of violence that flooded the country. It means setting one citizen against another citizen (in this case).

This grievance goes on to state that George has encouraged North American Indians to follow their traditions of mercilessly killing every citizen regardless of state, gender or age.

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