Final answer:
Bertrand Russell identified the initial error in understanding knowledge of universals as a misunderstanding of the nature of particulars. He highlighted the distinction between direct knowledge (knowledge by acquaintance) and inferred knowledge (propositional knowledge), emphasizing the inferential process in obtaining knowledge of the external world.
Step-by-step explanation:
According to Bertrand Russell in "Problems of Philosophy," the initial error regarding knowledge of universals was a misunderstanding of the nature of particulars, which is option c). Russell's work distinguishes between knowledge by acquaintance and propositional knowledge. Knowledge by acquaintance is direct and does not involve inference, whereas propositional knowledge is a product of inference. For instance, when we experience pain, we are directly acquainted with that pain; no inference is required to be aware of it. When we infer that "something is causing me pain," we are engaging in propositional knowledge.
Russell's critique of empiricism revolves around its inability to explain universal knowledge that we have not experienced directly, like mathematical and logical truths. Moreover, Russell's analysis implies that all our knowledge of the external world, including universals, is mediated through sense data and thus requires inferential reasoning to go beyond direct experience. This perspective was a reaction to earlier philosophic traditions, including empiricism and rationalism, highlighting the role of the mind's structure and its a priori categories in shaping our knowledge.