1 It is in the country——she live.2 It is the country —— she live.

1.that
这是个强调结构句,被强调的是地点状语 in the country
2.where （= in which)
这是where 关系副词引导的定语从句,修饰the country那这个句子呢，It could be higher in the rural areas ___ ethnic minority people live.where = in which引导定语从句， 关系副词 表地点意思是(live ) in the rural areas