Read the following passage and mark the letter A, B, C, or D on your answer sheet to indicate the correct answer to each of the questions.  

   Eighty percent of all diseases in India and most developing countries are because of poor quality water. And when we look at the reason for poor quality water, you find that it is our abysmal attitude to the disposal of human waste. In India, it is unfortunately only the women who carry water. So for all domestic needs, women have to carry water. So this is a pitiable state of affairs which affects them the most.

   So realizing how important issues like sanitation and the disposal of human waste were, we went into the arena of sanitation. Together with a lot of villages, we began to talk about how to really address this situation of sanitation. And we came together and formed a project called MANTRA to bring a transformation in rural areas. Villages that agree to implement this project, they organize a legal society where the general body consists of all members who elect a group of men and women who implement the project and, later on, who look after the operation and maintenance. From a protected water source, water is brought to an elevated water reservoir and piped to all households through three taps: one in the toilet, one in the shower, one in the kitchen, 24 hours a day.

   And for that, they come together, collect all the local materials - local materials like rubble, sand, aggregates. Usually a government subsidy is available to meet at least part of the cost of external materials like cement, steel, toilet commode. And they build a toilet and a bathing room. Also, all the unskilled laborers, i.e. daily wage earners, mostly landless, are given an opportunity to be trained as masons and plumbers. So while these people are being trained, others are collecting the materials. And when both are ready, they build a toilet, a shower room, and a water tower, an elevated water reservoir. More than 1,200 villages have so far done this. It benefits over 400,000 people and it’s still going on. For India and such developing countries, armies and armaments, software companies and spaceships may not be as important as taps and toilets.

The word "this" in paragraph 3 refers to _____ .