Ideally, groups focused on environmental justice should be concerned with how new government projects will impact local populations. Specifically whether the projects would pose an unjust burden for lower-income and minority communities.

* will impact local populations. Specifically whether the projects would pose an unjust burden
* will impact local populations, specifically whether the projects would pose an unjust burden
* will impact local populations and pose an unjust burden
* will impact local populations and, specifically, pose an unjust burden
* will be impacting local populations and posing an unjust burden

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Explanation:

The most obvious problem with this example is that the second group of words is a sentence fragment. However, this fragment must be corrected without changing the original meaning of the sentence or creating awkward verb forms.

1. The second group of words is a sentence fragment.
2. Adding a comma before specifically allows the two groups of words to join into one longer, complete sentence without changing the original meaning.
3. This option changes the original meaning of the sentence.
4. Although this sentence is grammatically correct, the original meaning has been changed.
5. The verbs in this example are awkward, and the original meaning has been changed.

The correct answer is B.

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This is a great question.

The choice of verb tenses confused me: "should be concerned" ... "will impact" ... "would pose".

I went for answer C as that option eliminated what I saw as a conflicting "would".

I believe the mixed usage of "will" and "would" is correct, as it could be argued that all "new government projects" impact local populations, therefore it would be correct to use a verb tense expressing certainty, while the generation of an unjust burden for lower-income communities is hypothetical ... an unjust burden may be placed on lower-income communities ... therefore it requires a conditional verb tense.

It could also be argued that not all "new government projects" impact local populations, and therefore the answer should use "would impact" instead of "will impact".

But now, thinking about, it shouldn't matter.

Based on the question, it is clear that the person making the statement believes that "new government projects" will impact local populations, and that "groups focused on environmental justice" should be concerned with these new projects and whether these projects would pose an unfair burden for lower-income communities.

Anything different would be changing the meaning of the initial statement.
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Please kudos if my post helps.