PT 29, S1, Q22 - The government claims that

[steven.kantowitz]

Is C incorrect just because it uses the term "best interests of the public." while the passage is concerned with people fear?

[ManhattanPrepLSAT1]

There's a bit more to it. The biggest issue with answer choice (C) is that the principle doesn't apply to the situation. The principle in answer choice (C) discusses what happens "IF" a potentially dangerous thing is safe only because the financial security of those responsible for its operation depends on its being safe. Can we really say that nuclear power is safe only because the financial security of those responsible for its operation depends on its being safe? It might be safe for other reasons as well.

The evidence in this argument is that government has taken steps to limit the nuclear industry's financial liability. The conclusion of the argument is that the people's fear of injury as result of nuclear accidents is justified.

Let's bridge the gap with a principle.

(A) does not apply. The government has never claimed that something was unsafe.
(B) does not apply. Those who have control over nuclear power do not stand to benefit financially from a nuclear accident. In fact, it would probably be disastrous for them, and that's why the government limited their financial liability.
(C) does not apply. We don't know that nuclear power is safe only for the reason in the answer choice.
(D) bridges the gap. Put into other words, this answer choice reads, "if the government acts to prevent a certain situation, then there is a real danger of that situation arising."
(E) justifies the wrong claim. We want to justify the people's fear, not the government's actions.

Good question though!

It's really important that on principle questions you match both sides of the principle with both sides of the argument. Match the "IF" part of the principle with evidence and the "THEN" part with the conclusion. And don't forget to take the contrapositive into account!