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C)refers to the alternative version of a given reality.
A fact is something that actually exists—what we would call "reality" or "truth." An alternative is one of a choice between two or more options, like when actor Maurice Chevalier said "Old age isn't so bad when you consider the alternative," the alternative here of course being death. So to talk about alternative facts is to talk about the opposite of reality (which is delusion), or the opposite of truth (which is untruth).
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