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Get access to the detailed solutions to the previous year's questions asked in XAT exam.
From the sentence "They also represent a state of mind, a form of psychological displacement that has become endemic to modernizing societies" it is clear that many people now consider refugees as a common occurrence or byproduct of development. Hence emotional estrangement of the PAF is not going to a concern for a project proponent.
The other options are either irrelevant to the concern of someone who supports the project or is unrelated to the context. So the correct choice is D.