Maarten is on the right track! ;-)
Here, I believe "elle" refers to "l'administration française" (= the French authorities). For now, I have added an extra hint explaining what "elle" refers to. However, I will discuss this particular question with the French team as I understand your point here.
We've amended this question to include the word "administration" instead of "elle" and we've also reworded the hint so as to avoid any ambiguity.
The question was taken from a Level B1 Test - Level Test B1 - Liberté, Égalité, Fraternité
I hope this is helpful.
Bonne journée !
It's difficult to answer the questions without context, but as it stands:
Oui, elle peut le décider... -- Yes, she can decide it....
Who or whatever elle or le refer to is lost in the missing context. Your hunch sounds reasonable.
Perhaps ‘elle’ is ‘la République’, or ‘la France’, denying citizenship, given the following justifying reference to the essential values of ‘the republic’ ?
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