Find the part of the sentence that contains an error:
What makes the draft legislation especially contentious is not its proposed restructuring of fiscal authority per se, (1)/ but that it assumes, without empirical evidence, (2)/ a fiscal parity among states whose developmental starting points are (3)/ incomparable by any accepted standard. (4)

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Accepted Answer

Solution:
The error is in part **(2)**.
Given sentence:
"What makes the draft legislation especially contentious is not its proposed restructuring of fiscal authority per se, but that it assumes..."
The structure **"not...but..."** should be parallel.
Here, the sentence says:
- **not its proposed restructuring** - **but that it assumes**
These two parts are not grammatically parallel.
Correct form:
"What makes the draft legislation especially contentious is not its proposed restructuring of fiscal authority per se, but its assumption, without empirical evidence, of fiscal parity among states whose developmental starting points are incomparable by any accepted standard."
So, the error lies in part **(2)**.
Final Answer: **(b) (2)**

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