Given below is a sentence with three blanks. Identify the correct order of…

Solution:

Meanings of the given words:

• evasion — the act of avoiding or escaping (for example, avoiding tax obligations).

• invasion — an unwelcome intrusion into a place or domain.

• prejudiced — showing unfair bias or discrimination.

• allusion — an indirect reference to something.

• compliant — following rules or standards.

• accustomed — used to or habitual.

How to fill the blanks (step by step):

1. First blank: The sentence needs a noun that names the harmful action that reduces government revenue. "Evasion" (avoiding tax) fits: "Tax evasion not only leads to leakage of government revenues..."

2. Second blank: This blank describes the taxpayers who follow the rules and are disadvantaged. "Compliant" (following rules) fits: "...but also puts compliant taxpayers at a disadvantage..."

3. Third blank: This blank describes the type of business environment that harms compliant taxpayers—an unfair or biased environment. "Prejudiced" (biased/unfair) fits: "...since they have to compete in a prejudiced business environment."

Why the other words do not fit:

• "Invasion" is about intrusion and does not describe a type of taxpayer or the act of avoiding tax.

• "Allusion" means an indirect reference and cannot describe taxpayers or a business environment.

• "Accustomed" means familiar or used to something and does not express the disadvantage or bias intended in the sentence.

Conclusion: The blanks are best filled by evasion, compliant and prejudiced (in that order). Therefore, the correct choice is the selection that lists those three words.