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The original sentence implies that government actors are influenced by political incentives, which can distort their perspective when selecting narratives or crafting stories. In the context of the sentence, "sway" functions correctly as an adverb, indicating direction or movement away from a point. "Skews" is the verb used in the sentence, meaning to cause something to be biased or distorted in favor of a particular perspective. It accurately conveys the intended meaning that political incentives lead to a distortion in the outlook on narrative selection. No replacement is needed here. "Narrative" refers to a story or account of events, experiences, or ideas, especially one that is created in order to persuade or influence. In the context of the sentence, it correctly conveys the idea that government actors are influenced by political incentives in their selection of narratives. No replacement is needed for this term. Hence, option E is the correct answer.
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