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What does 'that' refer to in this passage?

But the reason she was unavailable to speak with me is that she was out for a hike, because it was a beautiful spring morning, and she wanted to go for a hike. So of course this makes me even more intrigued, and when I finally do catch up with her, she explains it like this. She says, "Listen Laura, everything I do, every minute I spend, is my choice." And rather than say, "I don't have time to do x, y or z," she'd say, "I don't do x, y or z because it's not a priority." "I don't have time," often means "It's not a priority." If you think about it, that's really more accurate language. I could tell you I don't have time to dust my blinds, but that's not true. If you offered to pay me $100,000 to dust my blinds, I would get to it pretty quickly.

Since that is not going to happen, I can acknowledge this is not a matter of lacking time; it's that I don't want to do it. Using this language reminds us that time is a choice. And granted, there may be horrible consequences for making different choices, I will give you that. But we are smart people, and certainly over the long run, we have the power to fill our lives with the things that deserve to be there.

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It refers to the example of a situation that someone will offer to pay you some interesting amount of money to do such thing. To be specific, it is this sentence.

If you offered to pay me $100,000 to dust my blinds, I would get to it pretty quickly.

Therefore, it means that since this situation is not going to happen, I can acknowledge this is not a matter of lacking time

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"That" is a pronoun. Specifically in this case,

1.(used to indicate a person, thing, idea, state, event, time, remark, etc., as pointed out or present, mentioned before, supposed to be understood, or by way of emphasis): That is her mother. After that we saw each other.

The previous sentence set up a hypothetical, "If you offered to pay me $100,000 to dust my blinds" and your problem sentence suggests that, in general, nobody is actually going to do it, so there's no need to pay serious attention to it.

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