nevertheless,as a nation we are being more and more concerned with housing that does far mjore than support physical survival.

if you rewrote sentence 7 beginning with housing that does far more than support physical survival the next words would be:
a)we,as a nation
b)we are being
c)as a nation
d)we are concerned

d?

not 100 on that tho sorry

None of them make very good sense, but for sure none of the "we" choices will work. So I guess it's "c" -- I'd ask the teacher, though. This is not a good question.

The correct choice is option c) "as a nation."

To rewrite the sentence starting with "housing that does far more than support physical survival," you would continue by saying "as a nation, we are becoming increasingly concerned." This maintains the coherence and meaning of the original sentence.