var xDoc = XDocument.Load(filename); // or XDocument.Parse(xmlstring);
var elems = xDoc.Descendants("Settings").SelectMany(x => x.Elements()).ToList();
xDoc.Root.RemoveAll();
xDoc.Root.Add(new XElement("Settings", elems));
var newxml = xDoc.ToString();
OUTPUT:
<TransSettings>
<Settings>
<Force>False</Force>
<Active>True</Active>
</Settings>
</TransSettings>