For a democracy to function well, the electorate must be moral and intelligent. The "and" tells us that we need both of these necessary conditions. If just one of them fails, then the sufficient condition also fails. This is why, when we make a contrapositive, the "and" becomes an "or."
not M or not I - - - - - - - -> not DFW
If the electorate is not moral, not intelligent, or both, then the democracy will not function well.
Let's discuss answer choice C.
It is giving us a specific scenario: an electorate that is not moral, but is intelligent.
It doesn't have to say "or" because it is giving us the two characteristics that this hypothetical electorate has.
Based on the stimulus, what would we expect to happen in this case? Remember that a well functioning democracy needs both conditions. We are missing one, so the democracy cannot function well. Answer choice C matches this logic from the stimulus, which makes it the correct answer.