The phrase "When you give them an inch, they will take a mile" reflects a type of flawed reasoning known as slippery slope reasoning. However, since that option is not listed, the reasoning may be somewhat similar to a false dichotomy, as it suggests that giving someone a small concession will inevitably lead to much larger demands or negative consequences without considering other possibilities.
If you have to choose from the given options, the closest match might be false dichotomy, as it implies an oversimplified outcome.