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My answer is (C). It took me 02:50.

(A) The term (schadenfreude) cannot be pleasure.

(B) "them" in "who experienced them" can refer to "feelings".
It is thus rather hard to eliminate (B).
Eventually, I second-guessed what the author meant to say: we need an "it" here to refer to the pleasure of schadenfreude.

(C) "it" is here.

(D) Probably should not get rid of "the term" before schadenfreude.
"it" in "it is a universal human tendency" lacks an antecedent that means "deriving pleasure from the misery of others".

(E) It is nonsensical to suggest "Pleasure derived from the misery of others" "were partially validated by the thousands of workers".
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Ans:B
A) The term schadenfreude is pleasure derived from the misery of others, and social comparison studies suggesting that it is a universal human tendency were partially validated by the thousands of workers who experienced it

B) The term schadenfreude refers to pleasure derived from the misery of others, and social comparison studies suggesting that experiencing such feelings is a universal human tendency were partially validated by the thousands of workers who experienced them

C) The term schadenfreude refers to pleasure derived from the misery of others, and social comparison studies suggesting that experiencing such feelings is a universal human tendency were partially validated by the thousands of workers who experienced it

D) Schadenfreude refers to pleasure derived from the misery of others, and social comparison studies suggesting that it is a universal human tendency were partially validated by the thousands of workers who experienced it

E) Pleasure derived from the misery of others (the term schadenfreude) and social comparison studies suggesting that it is a universal human tendency were partially validated by the thousands of workers who experienced it
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the term ............refers to........... - eliminate A for plural form 'refer'. D & E are awkward sentence.
between B & C - B has pronoun ambiguity issue, 'them' should be 'it'
best answer C
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I'd go for B. The safest bet when there's more than one possible antecedent to a pronoun is to go for the nearest one. So, 'them' should refer back to 'feelings' in option B. Could be wrong, and can see why 'it' referring back to 'pleasure' might make sense in C, but purely on the basis of sentence-construction , B is better imo.

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