Step 1: Understanding the Concept
This is an inference question asking us to define the "nature of the crisis" according to the author's perspective, specifically focusing on the term "moral formation."
Step 2: Detailed Explanation
The phrase "moral formation" points to the process by which individuals develop character, ethics, and a sense of responsibility towards others. If the author focuses on the breakdown of this process as the root cause, they are framing the problem as an internal, character-based issue rather than an external, structural one.
(A) and (B) are too extreme. The author likely sees it as a serious problem, not "inevitable" (A), and probably wouldn't claim that external pressures have *no* role (B).
(C) is true but not specific enough. It describes the symptoms (emotional dysfunction) but doesn't capture the author's specific diagnosis related to "moral formation."
(E) is close but focuses only on the institutions. "Moral formation" is about what happens *inside people* as a result of those institutions.
(D) perfectly captures this idea. It frames the crisis as a "failure of character development and interpersonal responsibility" (the outcome of poor moral formation) and explicitly contrasts this with "structural or economic problems," which is the alternative explanation the author is likely arguing against.
Step 3: Final Answer
Option (D) provides the most precise description of a crisis whose root cause is a failure of "moral formation."