Which group is specifically exempt from discriminatory practices under the Civil Rights Act of 1968?

The correct choice reflects an important nuance in housing discrimination laws, particularly under the Civil Rights Act of 1968, which is also known as the Fair Housing Act. This act prohibits discrimination based on race, color, religion, sex, national origin, disability, and familial status in housing. However, there are certain exemptions outlined in the Act.

Religious groups are permitted to limit the leasing of nonprofit housing to members without violating these legislation provisions. This exemption acknowledges the fundamental rights of religious organizations to operate according to their tenets, which may include housing provisions specifically for their members. By allowing this limitation, the law aims to balance individual rights with the autonomy of religious organizations.

The other groups presented in the options don't share the same level of exemption under the Civil Rights Act. Government agencies, educational institutions, and private homeowners generally do not have the same latitude to exclude certain individuals from housing opportunities based on the protected classes defined in the Act. Hence, the choice regarding religious groups limiting housing to members accurately captures the specific exemption found within the framework of the Fair Housing Act.