What is this "that" refers to and why?

[bvn]

The jingle dress dance is a traditional dance of the Ojibwa people that originated in Minnesota

[niksworth]

That is supposed to refer to jingle dress dance here.

While this sentence is not grammatically incorrect, it would be better to place the modifier near to what it modifies. An alternative construction might be -

The jingle dress dance, which originated in Minnesota, is a traditional dance of the Ojibwa people.

[bvn]

That is supposed to refer to jingle dress dance here.

While this sentence is not grammatically incorrect, it would be better to place the modifier near to what it modifies. An alternative construction might be -

The jingle dress dance, which originated in Minnesota, is a traditional dance of the Ojibwa people.

Oh you are right, that's OA! But I don't know why "that" is not Ojibwa people. Could you help me out?

[niksworth]

If the intention of the author were to refer to Ojibwa people, he / she would have used the relative pronoun who instead of that.

[bvn]

If the intention of the author were to refer to Ojibwa people, he / she would have used the relative pronoun who instead of that.

Are yeah! Thank you very much, now I get the important point. I highly appreciate your answers.

[niksworth]

Anytime. Glad that helped.