Like the color-discriminating apparatus of the human eye,< insects' eyes depend on >recording and comparing light intensities in three regions of the electromagnetic spectrum.
(B) an insect eye depends on
(C) that of insects depend on the
(D) that of an insect's eye depends on
(E) that of an insect's is dependent on the
I guess, D is a clear referrent here. nouns matches properly. In E, "that of an insect's" may refer to the insect itself. Eye should match with an EYE, not INSECT's. It's not redundant, but clear.
Like the human eye, insect's depends on ...
Like the human eye, insect's eye depends on ...