There are six occurrences of inequality in the current Book of Mormon text, although in the earliest sources (the manuscripts) the word consistently reads as unequality, here in Mosiah 29:32 and in each of the five other places:
We notice also that all three scribes in 𝓟 (Oliver Cowdery, scribe 2, and Hyrum Smith) wrote unequality rather than inequality. (Hyrum wrote the one here in Mosiah 29:32, scribe 2 the two occurrences in Alma 4, and Oliver Cowdery the remaining three instances, including one that is extant in 𝓞.) The 1830 typesetter replaced all these instances of unequality with the standard inequality.
Earlier English tolerated both inequality and unequality, just as it did the corresponding adjectives inequal and unequal (see under each of these words in the Oxford English Dictionary). Nowadays we have only the inconsistently formed pair inequality and unequal in standard English, but earlier the other two also existed. The OED lists citations for inequal ‘unequal’ that date from 1386 to 1831. The nonstandard unequality has maintained itself longer, with citations in the OED from 1541 through 1973. Numerous examples of unequality can be found in today’s English, as in the title for an essay available for purchase on the Internet: “Unequality Towards Women” (found 5 August 2005 on ). The critical text will assume that the manuscript use of unequality is intended and represents the original text, although there is some possibility that Joseph Smith or his scribes consistently replaced inequality with unequality.
One may wonder if any of the Book of Mormon instances of unequality (or inequality) might be an error for the orthographically and phonetically similar iniquity. Yet the larger context for each of these six instances of unequality /inequality refers to some division among the people. Here in Mosiah 29:32 the division is between the king and the people he rules, as described in the preceding two verses:
Elsewhere the division described by the word unequality /inequality refers to varying degrees of righteousness or wickedness among the people.
It should also be noted that none of the manuscript examples of unequality have ever been accidentally written as iniquity. And when we consider the numerous occurrences of the word iniquity in the text (a total of 226, including the plural iniquities), there is not one case where the scribe (or a typesetter, for that matter) has accidentally changed iniquity to inequality (or iniquities to inequalities).
Summary: Restore all six instances of unequality in place of the standard inequality, in Mosiah 29:32 as well as in Alma 4:12, Alma 4:15, Alma 16:16, Alma 28:13, and 3 Nephi 6:14; none of these examples of unequality appear to be an error for the orthographically and phonetically similar iniquity.