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In the mental health field, the term schizophrenic applies to patients diagnosed with a psychiatric illness whose symptoms include auditory hallucinations and delusional thoughts, while in common parlance it is people who have a split personality.

A) it is people who have -> "It" doesn't have clear antecedent. Incorrect.

B) it refers to someone who has -> "It" refers to "the term schizophrenic". I see parallelism as we say "the term schizophrenic applies to patients diagnosed...." and "it refers to someone .....". Let's keep it.

C) it is a person who has -> Same error as A. Incorrect.

D) such a patient has -> We were talking about "the term schizophrenic", not a person. Incorrect.

E) it means to have -> Same error as A. Incorrect.

So, I think B. :)
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