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I think it is down to options A and C.

(A) deriving a general principle about the rights of individuals from a judgment concerning the obligations of governments
- It does not derive a general principle about rights of individuals but derives that the practice is harmful. It draws an analogy between two statements.

(C) inferring that since two institutions are similar in one respect they are similar in another respect

- Correct. It derives a relationship between two cases and draws an inference from that.
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Two institutions that are discussed here are 1. Involuntary servitude 2. Taxing earnings from labor.
Involuntary servitude and taxing earnings from labor are similar in the aspect that both are forced work for another's purpose. Since both are similar in this respect ,
we are concluding that they are similar in another respect too i.e both are pernicious.

Option C is the correct answer.
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