The Organization for Economic Cooperation and Development in Finland requires that all teachers have master’s degree and funds the same to ensure that its teachers impart high quality of teaching.

A. degree and funds the same to ensure
B. degree, funds the same, and ensures
C. degree and fund the same to ensure
D. degree, funds the same, ensuring
E. degree, funding the same to ensure

The organization requires that all teachers have masters' degree and fund the same [to ensure that its teachers impart high quality of teaching]

Since there is a subjunctive 'requires', we need to use base form of verb i.e. 'have', & 'fund'

The Organization for Economic Cooperation and Development in Finland requires that all teachers have master’s degree and funds the same to ensure that its teachers impart high quality of teaching.

A. degree and funds the same to ensure -- not clear whether funding the teachers or Masters degree.
B. degree, funds the same, and ensures-- Organization cannot insure for sure. It can just try.
C. degree and fund the same to ensure -- singular funds is required here
D. degree, funds the same, ensuring-- funding the same to ensure-action to ensure something not automatically getting ensured.
E. degree, funding the same to ensure -- Present participle "funding" modifies the sentence before the comma." Same" here refers to the policy of the organization to have all the teachers with masters degree only. & it funds this policy.

I will go with E.

Before the meaning issue, A has a modification problem IMHO.
Meaning wise too, I do not think A conveys a logical correlation by equating requirement and funding.
More on this after the OE is out.
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Here is the official explanation for this question:

Understand the Meaning of the Original Sentence

The sentence presents two facts about an organization in Finland - Organization for Economic Cooperation and Development. This organization does two things with an aim to ensure that its teachers impart high quality of teaching.
1. It requires that all teachers have masters’ degree
2. It funds the same – i.e. it funds the masters’ degree education of teachers.

Find the Errors in the Original Sentence

1. The Organization [/color]for Economic Cooperation and Development in Finland requires
a. that all teachers have master’s degree
2. and funds the same to ensure that its teachers impart high quality of teaching.

In this sentence the two verbs – requires and funds – make sense and agree in number with the subject - organization. Per the context of the modifier “to ensure that its teachers…”, it is clear that it provides the purpose of both the actions of the organization. This sentence is correct as is.

Review Answer Choices to do POE

Choice B – This choice no longer provides the purpose of the actions. By changing “to ensure” to “and ensures”, the sentence implies that the organization somehow (probably with some other measures) ensures that its teachers impart high quality of teachers. This is not the intended meaning of the sentence.

Choice C – This choice is also grammatically correct but it changes the intended meaning of the sentence. Per this choice, the organization requires two things from the teachers.
1. Teachers have master’s degree
2. Teachers fund the master’s degree

This is clearly not the intended meaning. Per the intended meaning, the organization requires that teachers have master’s degree and in fact the organization itself funds the same (obviously for the teachers who do not have master’s degree). The organization implements this requirement and funds the education with a single aim – high quality of teaching.

Choice D – This choice does not use correct punctuation to connect the two verbs – requires and funds.

Choice E – Use of “funding the same…” is incorrect here. Neither of the two interpretations of the verb-ing modifier is correct:
1. Organization requires that teachers have master’s degree – this results in the organization funding the education. –Illogical.
2. Organization requires that teachers have master’s degree by funding the same. - Illogical

TAKE AWAYS

1. Understand the meaning of the original sentence. Note the relationships among each part of the sentence – both from grammatical standpoint and from logical standpoint.
2. Make sure that these relationships are maintained in the correct choice as well.
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Organization ... 'requires that' ... should be followed by infinitive "to ensure"
so, B,D out.

fund is a verb used for subject Organization so it should be parallel to requires. so it should be 'funds'.

In this sentence main clause ends before 'and'.
"Organization requires that Teachers have master's degree and funds ..."
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the Battle continues ..

Why is "degree" not plural?

"all teachers have degrees...."