Vonnegut uses satire to expose which societal
folly?
society's lack of law and order
society's fear of people who are beautiful
society's obsession with equality

I believe it's the last one.

Explanation:

One needs to look now farther than the first paragraph to realize that Vonnegut's tale is laced with irony and satire.  The strongest hint is when he mentions that there are over 100 ammendments in the Constitution.  All these ammendments are designed to make society "perfect."  Later on George and his wife Hazel are discussing how George's handicaps, the bags of birdshot tied to his legs, are terribly inconvenient and painful.  Hazel suggests George break a law and remove the bags since he isn't competing against anyone at home.  George replies that if he broke the law so would others and they'd end up right back in the "Dark Ages".  These examples depict there is no such thing as a perfect society.  Equality does not bring about perfection and competition is essential for a thriving economy.  In every society there are winners and losers.  

Sorry if i'm wrong.

C. society’s obsession with equality

Explanation:

The next one is the last two

by exaggerating and distorting reality

by creating a dystopian society