Losing sight of the benefits of something implies that other affairs are put first before the activity in consideration. So, the statement that supports the idea that Americans have lost sight of the benefits of participating in sports is;
The statement above reflects the fact that Americans were not prioritizing sports. According to the author, the existence of Americans deprived them of the minimum of physical activity.
Perhaps other preoccupations were taking away the time required for sports.
Therefore, the statement in paragraph 7 is correct.
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