The correct answer is - D) An increase in literacy rates can lead to a higher standard of living.
Latin America is not the place in the world that can brag about its high literacy rates. It differs from place to place, but in general, it is not on a satisfying level. The increase of literacy in the population is almost a guarantee for a higher standard of living, since the people are more specialized, have better skills, and can not be easily manipulated by the politicians and the company owners, and vice versa, the lower the literacy rates, the worse the standard of living, since the people are much less knowledgeable, don't have skills, and are easier to manipulate with.
A nice contrast can be seen between Chile, and Nicaragua, where Chile is leader in literacy rates, and it is moving forward on every level, and the population has a the highest standard of living, while Nicaragua has much lower literacy rates, and the country is in a bed situation, with people living in poverty or on the verge of poverty.