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i think they are interchangeable if used correctly. 0
If i am not wrong ,here is the actual usage.
Despite the fact that .. . OK ( there may be other ways)
Inspite of ....OK
Although.... . OK
by the way, i have not come across "inspite" yet in all the time i prepped for my gmat. akamai even pointed out that inspite is not really used. but its definitely good to know.
sorry i could not explain the distinction clearly. The good thing about ETS's Sc's is, MOST of the tough questions have more than one error. so, even if you miss one , you should be able to catch the other. Just to be sure , please look up the OG and check for explanations for the LAST 50-75 SC's. I hope you will find most of the questions having this trend.
Now that i have gotten a chance to ramble a bit, please allow me to add a note here for the new guys:
I know we try very hard to learn the finer points of english while practicing SC. IMO, unless you are talking about a 40+ verbal, you wouldnt even come close to the toughest questions in sentence correction. ( I say 40+V because i ended up with a 39V) Sure, work on those SC's , but never never let up on that RC and CR practice. Let us focus on overall performance.