Final answer:
The liberal activist suggests that politicians denigrate discussions about class warfare due to societal denial, ignoring the reality of a highly balkanized society, fragmented into different social groups.
Step-by-step explanation:
The liberal activist's assertion that politicians' tendency to (i) denigrate talk of class warfare arises from a communal state of denial aligns with the view that there is a refusal to acknowledge the highly (ii) balkanized nature of society. This suggests a deliberate downplaying of societal divisions and an avoidance of discussions on the structural inequalities that can lead to what some may perceive as class warfare. The idea of a balkanized society indicates that there are fragmented social groups with differing interests and powers, which contrasts with a socialized or politicized society. Hence, the most fitting answer to the student's two blanks would be (A) denigrate in the first blank and (E) balkanized in the second blank, indicating that the activist believes politicians disparage discussions on class issues and ignore the fragmented nature of our society.