Contrary to the scholarly wisdom of the 1950’s and early 1960’s that

Excuse me, but I have to firmly disagree with this sentence as a whole, including the answer choices.

Contrary to the scholarly wisdom of the 1950’s and early 1960’s that predicted the processes of modernization and rationalization would gradually under mine it, ethnicity is a worldwide phenomenon of increasing importance

"it" here clearly refers to ethnicity and it doesn't make sense, therefore it's incorrect. All the answer choices either repeat the same ambigous use of "it" or create redundancy by using "ethnicity" twice ,so to be correct the sentence would have to be rewritten in some other way.

Of course you can say that the only way for this sentence to make sense, given the answer choices provided, is to assume that "it" refers to the following "ethnicity" but come on, in this case the SC becomes subjective to one's interpretation of the meaning, following this logic you can discuss the meaning of virtually any SC question. There have to be objective reasons to consider a choice correct.

Here, the way I see it, the question given is not written in a good way to test SC skills and creates the "wrong" type of difficulty. Instead of testing objective knowledge it tests subjective interpretation of the meaning.

What you guys think? I am I missing some exotic rule here? For a 600+ question there shouldn't be any though.