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GMAT Verbal Section | SC question.

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Sorry I did not know where I have to post it...
I have a general question. In this sentence do we know because it is obvious where the pronoun they refer?
My parents sold their cars because they had no money, they are pretty confused now.

The pronoun is correct because only parents and not cars can be confused or it is still wrong and its better to replace it with parents again?

For example if it was The parents went for a movie and the kids played outside , they were pretty happy. This sentence
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