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Explanation:

Throughout the passage, the author reiterates the importance of self-governance. Option 1 reflects the same and can be inferred from the line - “Must the citizen, ever for a moment or in the least degree resign his conscience to the legislator?”.
Option 2 cannot be inferred since the author does not mention business houses or their functioning in the passage.
Option 3 seems correct but is not as suitable as option 1. Though the author elucidates through the passage how governments and armies are not required, his prime belief is contained in option 1.
Option 4 can be eliminated since the concept of nations has not been mentioned in the passage.
Option 5 is contradictory to the author's opinion that a rule of majority is not always in the right.
Hence, the correct answer is option 1.