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The whole point that Tolkien was trying to make was that Men, Elves, and Dwarves would have quickly succumbed to the power of the One Ring.
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Actually, it is stated in LOTR that dwarves didn't succumb to the power of Sauron through the rings. The rings awakened the lust for riches in them, but that was all. However, I doubt one of them could have destroyed the Ring - although for different reasons than men, for instance.
It seems you're right - Hobbits were the chosen race.