Covering 71 percent of Earth’s surface, the oceans play an essential role in maintaining the conditions for human existence on land, moderating temperature by the absorption of heat and carbon dioxide, and giving pure water back to the atmosphere through evaporation
(A) Covering 71 percent of Earth’s surface, the oceans play an essential role in maintaining the conditions for human existence on land, moderating
(B) Covering 71 percent of Earth’s surface and playing an essential role in maintaining the conditions for human existence on land, the oceans moderate
(C) The oceans cover 71 percent of Earth’s surface and play an essential role in maintaining conditions for human existence on land, and by moderating
(D) The oceans cover 71 percent of Earth’s surface, play an essential role in mandating the conditions for human existence on land, and moderate
(E) The oceans cover 71 percent of Earth’s surface, playing an essential role in maintaining the conditions for human existence on land, and they moderate
I couldn’t worry much about the serial comma (,) before the second item of the list in this case, not only because it is in the non-underlined part and but also because we can trump clarity over convention. Without the comma, it might weirdly appear that moderating temperature is achieved by two things, namely, by the absorption of A and B and by giving pure water through evaporation. I think GMAT is correct in inserting the serial comma.
Now with our main task, we may see that there is a present participle (giving) in the non-underline part. To match that participle, we need another present participle in the underlined part. Therefore, choices that depict a verb as in B, D, and E are out at the first strike.
In C, the participle moderating is a modifier and cannot be attached to a clause by conjunction. The relevant question is how many ‘ands’ can a sentence have in a list. A is perfectly parallel in that sense.