Since the public is excited, inevitably agog should take the first blank. However, as soon as we see the phrase "numerous setbacks", the feeling of dampening arises. Thus eliminating option E and also, looking over the phrase "much of the ferver" we can say that it would not be completely vanished and hence I think option F should be eliminated as well.

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This is a two-blank text completion question that tests:
- Tonal Contrast: Residents' initial excitement vs. the sobering reality of project setbacks.
- Vocabulary: Words like "agog," "tempered," and "precluded" must fit the emotional shift.
- Logical Flow:
- Blank (i): Residents' initial reaction to "exciting projects" (positive).
- Blank (ii): How "setbacks" affect their fervor (diminish it).

Approach:
1. Blank (i): "Residents are understandably [blank]."

(A) vexed (annoyed) $\(\rightarrow\)$ Contradicts "exciting projects."
(B) concerned $\(\rightarrow\)$ Incorrect; implies worry, not excitement.
(C) agog (eager/excited) $\(\rightarrow\)$ Fits; matches "exciting."

2. Blank (ii): "Fervor is likely to be [blank] a heavy dose of reality."

(D) tempered with (moderated by) $\(\rightarrow\)$ Fits; setbacks reduce excitement.
(E) intensified by $\(\rightarrow\)$ Contradicts "setbacks."
(F) precluded by (prevented by) $\(\rightarrow\)$ Too extreme; fervor isn't eliminated, just dampened.

Correct Pair: (C) agog, (D) tempered with.