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Although the term "depression" is popularly applied to numerous episodes of sadness or a bad mood, in clinical psychology it is a serious and often disabling condition that significantly affects a person's work, family and school life, sleeping and eating habits and general health.
This answer choice corrects the original logical mistake by using the verb refers to describe what the term does.
This answer choice is illogical. The intent of the sentence is to define the term "depression". The pronoun it refers to the term, but defines depression. The term is not a serious and often disabling condition - depression is.[[snippet]]
In addition, this answer choice creates another pronoun mistake by using the pronoun they. A pronoun refers to a previously mentioned noun, but they does not refer to any of the nouns that appear in the sentence.
What helps us identify this mistake is the following Stop Sign:
Any pronoun that appears in the underlined part of the sentence or after it