In the following sentence, one numbered part may have an error, or the sentence may be fully correct. Choose the number of the part that has an error, or choose option (4) for No Error. Sentence: People would see bitcoins current price rise (1) / as merely a reflection of its bright future (2) / as a stateless currency. (3)

Introduction / Context:
This question focuses on pronoun reference and possessive forms. The sentence discusses how people interpret the current price movement of bitcoin. The error in the original version lay in the phrase their bright future, which incorrectly used a plural possessive pronoun to refer to the singular currency bitcoin. The corrected version replaces that with its bright future.

Given Data / Assumptions:

• The sentence is divided into three numbered parts, with a No Error option.
• Part (1) refers to bitcoins current price rise.
• Part (2) refers to its bright future.
• Part (3) describes bitcoin as a stateless currency.

Concept / Approach:
The essential concept is pronoun agreement in number. A singular noun like bitcoin requires singular possessive pronouns such as its, not their. Using their would suggest multiple people or multiple entities, which would not correctly match a single digital asset. Therefore, in the phrase reflection of its bright future, the pronoun must be singular. The stored sentence had their bright future in part (2), which is wrong. Part (2) is therefore the problematic segment.

Step-by-Step Solution:
Step 1: Look at part (1): People would see bitcoins current price rise. The possessive form bitcoins in the stored data should technically be bitcoin's, but examination focus is on the pronoun in the next part.Step 2: Look at part (2) in the stored form: as merely a reflection of their bright future. Here, their does not clearly refer to any plural noun.Step 3: Recognise that the logical referent for the pronoun is the singular asset bitcoin, which is a singular noun.Step 4: Therefore, the pronoun must be its, which is the singular possessive pronoun used for things, including currencies.Step 5: Examine part (3): as a stateless currency. This is a correct descriptive phrase and is grammatically sound.Step 6: Conclude that part (2) contains the pronoun error and must be corrected from their bright future to its bright future.

Verification / Alternative check:
To verify, read the full corrected sentence: People would see bitcoins current price rise as merely a reflection of its bright future as a stateless currency. Now the pronoun its clearly refers back to the singular noun bitcoins price movement. As another check, imagine replacing bitcoin with another singular asset, such as gold. You would say golds current price rise reflects its bright future, not their bright future. This test supports the correction.

Why Other Options Are Wrong:
Option 1: Part (1) is acceptable in exam usage, even though formal writing would prefer bitcoin's current price rise with an apostrophe.Option 3: Part (3) uses as a stateless currency correctly to describe the nature of bitcoin and does not contain a grammar error.Option 4: Because part (2) originally contained an incorrect plural pronoun, the sentence is not error free, so No Error cannot be correct.

Common Pitfalls:
Examiners often use their because it sounds more natural to modern ears, especially when referring to entities whose gender is not specified. However, number agreement still matters. Another pitfall is that learners may get distracted by the financial terminology and ignore the short pronoun. Focusing on pronoun antecedent relationships in each clause is crucial for success in error spotting tasks.

Final Answer:
The wrong pronoun choice appears in the second part, so the correct option is 2.