Explanation

Reading the question: We have a question of logical continuation: we will complete the passage. Therefore, we'll predict something before checking out the answers.

Creating a filter: We learn from the prompt that movie pirates generally have no real interest in the movies... thus, the loss to the industry is "less than it would appear, because only a fraction of the apparent losses represent what would have been purchases." Not a pretty wording in our prediction there, but that's of no consequence.

Applying the filter: What prompts match? Choice (C) does. Choice (D) is related to what we said, though it's hyper-specific. Choice (D) also misses how the estimate in question is wrong--it doesn't even mention whether it's high or low, the critical piece of the picture. The correct answer is (C).