B. You can use a pointing word in paragraph 2 that refers to a word in paragraph 1.
This statement is correct. Using pointing words, such as "this," "these," "that," and "those," can help to connect the ideas presented in two paragraphs. By referring back to a word or idea in the previous paragraph, the writer can create a sense of continuity and coherence between the two paragraphs. This helps to guide the reader through the text and make it easier to follow the flow of ideas.