The correct answer is B. The author would most likely agree that, "Territorial sovereignty is not a prerequisite for the project of nation building."
In other words, a nation does not need a sovereign piece of land in order to be considered a nation. I found support for this in the long sentence beginning on line 50. The author discusses a type of nationalism that lacks a specific territory, but does have a shared culture and historical roots. So, you might have a point that shared culture is necessary for a nation. However, this does not prevent answer choice B from being correct. The author still believes that territorial sovereignty is not necessary for a nation.