The passage makes an argument in three parts: a fact about natural science, an assumption some social scientists make, and the author's own verdict on that assumption. Finding the conclusion means finding the verdict, not the background facts.
The signal phrase "But this would be a mistake" marks where the author stops reporting what social scientists want and starts arguing against it. Everything after that phrase, including the talk of neglected data and distorted phenomena, is support for the claim that reducing social science to mathematical formulae is wrong.
Let's summarize:
So the main conclusion is that phenomena in the social sciences should not be reduced to mathematical formulae, option 3.