Which of the following statements about local color is true? o In the nineteenth century, artists used local color to paint realistic landscapes.
O As a literary technique, local color was used to portray a specific region of the country.
O Local color is a theme that was frequently used by writers in the decade after the Civil War.
O People enjoyed stories with local color because they helped them learn about people in their community.

the pronoun reference replaces a noun, but you have to make sure there's no room for confusion.

in the first sentence "her" could be referring to shely or to the sister. the answer there is "shelly called her sister and told her about the new baby."

in the second sentence "it" could be referring to the roof or the floor. the answer there is "since the roof leaks on the family room floor, we need to repair the roof."

i believe the answer is inference