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Let's break down the sentence blank by blank, looking for logical connections and the precise meaning required. The overall theme is the challenges and risks associated with importing water.

- Blank (i): "Importing water hundreds of miles south is quite an operation, and the costs are reflected in the prices. This (i) $\qquad$ , especially in the context of the current financial crisis, is a motivation for decreasing importation."
- The preceding phrases "costs are reflected in the prices" and "financial crisis" directly point to the financial burden. The blank needs a word that refers to spending or the act of expending money.
- A. subsistence: The action or fact of maintaining or supporting oneself at a minimum level. (Doesn't fit the context of general costs/prices as a motivation for a firm).
- B. expenditure: The action of spending funds; an amount of money spent. This perfectly aligns with "costs," "prices," and the "financial crisis" as a reason to reduce the amount spent on importation.
- C. opulence: Great wealth or luxuriousness. (This is the opposite of a concern about costs in a financial crisis).

So, Blank (i) is B. expenditure.

- Blank (ii): "Additionally, importation from this source is unreliable: the water supply could be cut off at any time for any number of reasons, which would leave the region devastated if it does not prepare for that (ii) $\qquad$ "
- The blank refers to a future event that is possible but uncertain ("could be cut off at any time for any number of reasons") and for which the region must "prepare." This indicates a potential unforeseen event or emergency.
- D. pathos: A quality that evokes pity or sadness. (Irrelevant to a future event to prepare for).
- E. contingency: A future event or circumstance which is possible but cannot be predicted with certainty. This precisely describes the unpredictable cutting off of the water supply that requires preparation.
- F. conflagration: An extensive fire which destroys a great deal of land or property. (Too specific; the text mentions "any number of reasons," not just fire).

- Blank (iii): "One reason for the potential of this water supply to be cut off is the susceptibility of the levees to damage. There is an extensive levee system in the northern region's delta, and if something like an earthquake were to (iii) $\qquad$ the levees, the resulting salinization of the source would leave the region cut off for over a year."
- The blank describes the action an earthquake would take on "levees" that would lead to their damage and subsequent salinization of the water source. Earthquakes cause structures to break or burst.
- G. expunge: Erase or remove completely. (Doesn't describe the physical damage of levees by an earthquake).
- H. rupture: Break or burst suddenly. This accurately describes the effect an earthquake could have on a levee system, causing it to break and allow saltwater intrusion (salinization).
- I. protuberate: To swell or bulge outwards. (This describes a protrusion, not a destructive breaking that would lead to salinization).

So, Blank (iii) is H. rupture.
Putting It Together:
"Importing water hundreds of miles south is quite an operation, and the costs are reflected in the prices. This expenditure, especially in the context of the current financial crisis, is a motivation for decreasing importation. Additionally, importation from this source is unreliable: the water supply could be cut off at any time for any number of reasons, which would leave the region devastated if it does not prepare for that contingency. One reason for the potential of this water supply to be cut off is the susceptibility of the levees to damage. There is an extensive levee system in the northern region's delta, and if something like an earthquake were to rupture the levees, the resulting salinization of the source would leave the region cut off for over a year."

This completed passage flows logically and consistently describes the challenges of water importation.

The final answer is $\(\mathrm{B}, \mathrm{E}, \mathrm{H}\)$.