The problem is the pronoun "It" at the start of the second sentence.
Does the writer mean for it to refer to the lobby? the hotel? or the chandelier?
Well, subject pronouns HAVE to agree with the main subject in the previous sentence. Since neither 'hotel' nor 'chandelier' are the subjects, the pronoun must be referring to 'lobby.' (We know that because these nouns appear inside of a prepositional phrase, and such nouns can never serve as the "real" subject of a sentence.) Since, that is the case, grammatically speaking, there really isn't any confusion. In fact, there shouldn't be any confusion because the writer has made no grammatical mistake! The only confusion is the **potential** ambiguity in the mind of the reader -- and quite understandably so.
But, ... if we are directed to recast the sentence, one acceptable alternative could be this:
The lobby of the old hotel, which was dimly lit with a crystal chandelier, was dingy and needed repair.
According to Roman tradition, the Republic began in 509 BCE when a group of noblemen
overthrew the last king of Rome. The Romans replaced the king with two consuls--rulers
who had many of the same powers as the king but were elected to serve one-year terms
Umm you can either sue them when you wake up or tell them thanks
B is correct. It is one sentence that can be made into two.