An exceptionally literate people, more Icelanders publish books per

A: An exceptionally literate people, more Icelanders publish books per capita than do the people of any other nation.

Error 1:
In A, “an exceptionally literate people” serves to modify “more Icelanders”.
The implication is that MORE ICELANDERS constitute A PEOPLE.
This meaning is nonsensical.
Whereas “more Icelanders” refers to a NUMBER of Icelanders (10 Icelanders, 100 Icelanders, etc.), “a people” refers to an ENTIRE NATION.
Thus, A implies that a NUMBER of Icelanders constitute an ENTIRE NATION.
Not the intended meaning.

Error 2:
“books PER CAPITA” means (total number of books)/(total population).
This phrase cannot serve to refer to “more Icelanders”, which -- as noted above -- implies a NUMBER of Icelanders.
Rather, “per capita” must refer to the entire NATION of Icelanders, as in the OA:
“Icelanders publish more books per capita”.
Here, Icelanders refers to the entire population.

Error 3:
“More Icelanders publish...than do the people of any other nation”.
This comparison is illogical.
Whereas “more Icelanders” refers to a NUMBER of Icelanders, “the people” refers to an entire NATION of people.
A NUMBER cannot be compared to a NATION.