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The author refers to the denticulate stone tools from Châtelperonn in order to point out that
Although the sentence states that Neanderthals may have learned a particular skill from humans, this does not mean that they were generally at the same technological level.
This answer choice attempts to distract by using the word "transitory" which looks similar to "transition", but means something different. The word transitory means "fleeting" - not lasting for a long time. Nowhere does the passage state that Neanderthals were transitory.
The passage states that Neanderthals may have adopted the production technologies - i.e. the methods of making tools, not the tools themselves. If true, Neanderthals did make their own tools with methods borrowed from humans.
The passage mentions the transition between humans and Neanderthals in terms of cultural and biological evolution. Nowhere does it mention the transition between archeological periods, such as the Stone Age.
If Neanderthals adopted tool-making methods from humans, this means they had cultural contact and could communicate with each other, and therefore were not as different (=distinct) from one another as the proponents of the "replacement" theory believe.