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Option 3 : 3

The incorrect part of the sentence would be part 3.

This is because the sentence talks about many rich people of the Silicon Valley and not just one particular person. Therefore, the phrase 'they is' is grammatically incorrect and should be replaced. The correct replacement should be ‘they are’.

So, the correct sentence would be:

While philanthropy by the rich is not a new concept, Silicon Valley's newer billionaires appear eager to spread their wealth while they are still young.

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