The lizards snapped up i ( TC)

The lizards snapped up insects that are so (i)_______ that other potential predators avoid them. Among the lizards’ prey were some beetles that they initially (ii) _______ because the insects were spraying their hot, irritant defense chemical at the time. Yet even these produced no apparent ill effects, since the lizards, having eaten, proceeded on their way (iii) _______ enough.

Blank i

a) rare d) sought g) erratically

Blank ii

b) nutritious e) rejected h) laboriously

blank iii

c) noxious f) resembled i) nonchalantly

My question:
Among the lizards’ prey were some beetles that they initially (ii) _______ because
How could I recognize that ( they ) here refer to lizards, not beetles? I thought that it refers to beetles because it is the closest noun to it.

It, not necessarily, has to be closer to an NP(Noun Phrase). Plus, there is no specific rule to find out what they is referring to, because personal pronoun can bind with, or refer to, any data within a context or discourse–not making a sentence weird or ungrammatical.

Among the lizards’ prey were some beetles that they initially rejected because…

Here, If they would refer to some beetles, then the pronoun “they” would have been gapped. In other words, the word “they,” in this sentence, is eliminating the possibility that “they” is referring to “some beetles.”

Notice this example,
This is the copy that is defective. (Grammatical)
This is the copy that ____ is defective. ( ____ stands for a gap) (Same sentence, just showing you the gap)
But,
*This is the copy that it is defective. (Ungrammatical)

Moreover, It is possible to rephrase the sentence something like this, “Among the lizards’ prey were some beetles that initially got rejected (by them)…” But look, there is no “they” here!! (I could be wrong though.)

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