Choose the alternative which best expresses the meaning of the Idiom/Phrase.
Don't intermingle with the bad hats

People of bad character

The idiom "bad hats" refers to people of bad character, so the answer is (2) People of bad character.

The other options are incorrect. (1) Poor people is not an accurate description of "bad hats", as there are poor people of good character and wealthy people of bad character. (3) Mentally disturbed people is also not an accurate description, as there are mentally disturbed people of good character and mentally sound people of bad character. (4) Upper class people is not an accurate description, as there are upper class people of good character and lower class people of bad character.