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The passage gives the example of the Inuit peoples to illustrate the role of geographic factors and the example of Aboriginal Australians to illustrate the role of biogeographic factors on human phenomena and characteristics. That is, these examples are offered in the passage to show how physical circumstances can dictate human behavior and cultures. So, option C is the right choice.
Options B and D are easily ruled out. While option A also talks about 'environmental factors', this option is not the right choice as the examples are not given to illustrate how environmental factors influence livelihoods and development as such but how they influence, more generally, human characteristics and cultures.