The correct answer is “Globalization can cause confusion and discomfort as people adjust to different, often conflicting, cultural values and expectations.”
Indeed, the excerpt shows that Globalization causes confusion both for the host society and the immigrants. In this situation, the teacher lacks the cultural contextual information to understand that this Bengalese family is referring to their custom of having a school name for students. She is asking probing questions to try to understand if this is a middle name or a nickname.
The Bengalese parents seem to either lack the humility or the patience to explain exactly why they mean and provide her with the context she needs to understand their request. Another possibility is that they lack the education or linguistic tools to properly explain this.
Incomprehension goes both ways, had they been able or willing to explain this, the teacher would have been able to explain to them that their child can use a second school name in a personal context and have his friends and other students refer to him by such name but that with regards to academic records, American laws prohibit such practices as these records must match the exact legal identity of the student.