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Sentence Correction: Pronoun Questions - Ambiguity

The heiress of the late Duke of Gelderland, a world-renowned member of the Dutch nobility and shipping tycoon, has granted her youngest sister 40% of the family business' shares, as she had overwhelming debts.

You are right!

This answer choice is stylistically flawed. The pronoun she is ambiguous because it agrees with both heiress and sister

What helps us identify this question as a Pronoun question as well as identify the ambiguity mistake is the following Stop Sign:

Every pronoun in the underlined part of the sentence or after it

While this answer choice corrects the original ambiguity mistake, it is grammatically incorrect. Replacing the singular verb has with the plural have creates a Subject Verb Agreement mistake.  

What helps us identify the Subject Verb Agreement mistake is the following Stop Sign:

A long distance between the subject and the verb  

This answer choice repeats the original mistake. The pronoun she is ambiguous because it agrees with both heiress and sister

What helps us identify this question as a Pronoun question as well as identify the ambiguity mistake is the following Stop Sign:

Every pronoun in the underlined part of the sentence or after it

In addition, the omission of the word overwhelming changes the meaning of the original sentence.

While this answer choice corrects the original ambiguity mistake, it changes the meaning of the original sentence by omitting the word overwhelming.

has granted her youngest sister 40% of the family business' shares, as she had overwhelming debts
has granted her youngest sister 40% of the family business' shares because the sister had overwhelming debts
have granted her youngest sister 40% of the family business' shares, as the youngest sister had overwhelming debts
has granted her youngest sister 40% of the family business' shares, as she had debts
has granted the youngest of her sisters 40% of the family business' shares, as the sister had debts