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Answer: (E) It is an attempt to undermine the criticism cited against the claim that capital punishment for theft was an essential part of the labor discipline of British capitalism.
Explanation:
The point that there is a difference between capitalism and industrialization was made to counter the criticism of capital punishment being an essential part of British capitalism and this is shown when the text reads "... such a criticism overlooks..." which means that the point was made in direct opposition to the criticism.
The author here therefore supports the argument that capital punishment for theft was in fact essential in instilling labor discipline.