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Explanation:

The passage talks about how dreams may seem strange and unrelated to any actual happening, but have a direct relation to an activity in the waking state. The first two sentences say that dreams are the clearly apparent visible manifestation of a hidden or obscure psychic cause. Option 5, which mentions that “overt” or 'plainly apparent' effects (dreams in this case) can have “covert” or 'not openly displayed' causes (“the psychic activities of the waking state” in this case), is close to the idea expressed in these two sentences.
Eliminate options 1, 2 and 3, which incorrectly attribute the qualities of overtness and covertness to the causes and effects.
Option 4 gives a proverb that bears no relation to the idea expressed in the two sentences of the passage. It is in fact somewhat contradictory to the main idea, as the proverb implies that outer effects or appearances are not related to inner hidden qualities. The passage says that there is in fact a relationship between hidden psychic forces and the outwardly apparent effects. Eliminate option 4.
Hence, the correct answer is option 5.

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