2) C

The argument made is the last line: “if we want to live in the most democratic…we should demand that the government subsidies the arts to a level which enables them to flourish”. It makes a correlation between democracy and arts sector. However, the flaw is that the paragraph thinks that the cause of a democratic society is flourishing art sector.  
REMEMBER: Correlation is not the same as causation. 

A – Wrong
A does not discuss anything about the correlation made in the text

B – Wrong
People’s physiological health is irrelevant to the text.

C – Correct
This correctly identifies the flaw. The text tries to say that in order to make a robust society, the arts sector must flourish. Hoover, it could be the other way around, i.e. a robust society could be the reason the arts sector flourishes.

D – Wrong
This differentiates between different types of arts, which is irrelevant to the text and the question. 

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