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Pragmatics in oral language development refers to:

  1. Understanding social rules of language

  2. Recognizing and manipulating sounds in spoken words

  3. Understanding grammatical rules in sentences

  4. Decoding written text correctly

The correct answer is: Understanding social rules of language

Pragmatics in oral language development refers to understanding the social rules of language. This includes the ability to use language effectively in different social situations, such as adjusting language use for different audiences and understanding nonverbal cues. Option B, recognizing and manipulating sounds in spoken words, is more closely related to phonological awareness. Option C, understanding grammatical rules in sentences, is more closely related to syntactic or grammatical development. Option D, decoding written text correctly, is more related to reading development and is not specific to oral language. Therefore, A is the correct answer as it specifically addresses the use and understanding of language in social contexts.