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The problem with this sentence is not to choose between rather than or instead of
Rather than and instead of require parallelism between the two terms that you comparing/replacing For instance
I'll go to [the cinema] instead of [the supermarket] Correct both terms are nouns I'll go to [the cinema] rather than [the supermarket] Correct both terms are nouns
I [ski] rather than [snowboard].Correct both terms are infinitives I [ski] instead of [snowboarding]. In GMAT this is incorrect because the two terms are not parallel
In addition, it's been argued that instead of should be use only with nouns or gerunds, whereas rather than can be used with almost everything.
For instance
I live [in Geneva] rather than [in Zurich]. Correct in Geneva and in Zurich are prepositional phrases I live [in Geneva] instead of [in Zurich]. Apparently this is incorrect in GMAT because in Geneva is not a noun I live in [Geneva] instead of [Zurich]. Correct both are nouns
Although you can use this rule whenever you find a problem that uses rather than/instead of, I recommend that you try to find other grammatical problems to rule out the choices. The split rather than/instead of can be a trap.
If you have to guess, then guess rather than
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