can u plz specify the source and also the original answer?

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A Wall Street Journal report said that the ship, that departed from Long Beach on a seven-day voyage to the Mexican Riviera, is about 200 miles south of San Diego when a fire ignited in the engine room, cutting off power, telephone service and air conditioning

A. that departed from Long Beach on a seven-day voyage to the Mexican Riviera, is about 200 miles south of San Diego when a fire ignited in the engine room, cutting off power, telephone service and air conditioning
B. which departed from Long Beach for a seven-day voyage to the Mexican Riviera, was about 200 miles south of San Diego when a fire ignited in the engine room and cut off power, telephone service and air conditioning as well
C. which departed from Long Beach on a seven-day voyage to the Mexican Riviera, were about 200 miles south of San Diego when a fire was ignited in the engine room that cut off power, telephone service and air conditioning
D. which departed from Long Beach on a seven-day voyage to the Mexican Riviera, was about 200 miles south of San Diego when a fire ignited in the engine room, cutting off power, telephone service and air conditioning
E. that has departed from Long Beach on a seven-day voyage to the Mexican Riviera, was about 200 miles south of San Diego when a fire ignited in the engine room, cutting off power, telephone service as well as air conditioning

THAT vs WHICH
Here which should be used instead of that, as the information in between the commas is not necessary but just an extra information.
Hence A and E are out.
Now we are left with B, C and D.
In B "for a seven-day voyage" is wrong.
Also, another problem in Option B is
when a fire ignited in the engine room and cut off power, telephone service and air conditioning as well.
The construction highlighted above is incorrect.

In C, verb "were" is incorrect and is not consistent with the singular subject "the ship".

Therefore, in D

The extra information starts correctly with WHICH. The verb "was" is consistent with singular subject "the ship".
Also,the action cutting off is subordinate to the fire ignition, hence the -ing form.

A Wall Street Journal report said that the ship, that departed from Long Beach on a seven-day voyage to the Mexican Riviera, is about 200 miles south of San Diego when a fire ignited in the engine room, cutting off power, telephone service and air conditioning

A. that departed from Long Beach on a seven-day voyage to the Mexican Riviera, is about 200 miles south of San Diego when a fire ignited in the engine room, cutting off power, telephone service and air conditioning----tense issue
B. which departed from Long Beach for a seven-day voyage to the Mexican Riviera, was about 200 miles south of San Diego when a fire ignited in the engine room and cut off power, telephone service and air conditioning as well---improper modifier
C. which departed from Long Beach on a seven-day voyage to the Mexican Riviera, were about 200 miles south of San Diego when a fire was ignited in the engine room that cut off power, telephone service and air conditioning----Ship is singular
D. which departed from Long Beach on a seven-day voyage to the Mexican Riviera, was about 200 miles south of San Diego when a fire ignited in the engine room, cutting off power, telephone service and air conditioning----correct
E. that has departed from Long Beach on a seven-day voyage to the Mexican Riviera, was about 200 miles south of San Diego when a fire ignited in the engine room, cutting off power, telephone service as well as air conditioning----as well as is additive phrase

IMO D