First, while does not always mean simultaneity.
Second, Marcab can you point out what are the problems we are having with the question in a gist?
I'd give a go before you post the OE.
I think its E as well.
The other options either have "they" or a active passive mix up.
Can you please elaborate on the other uses of "while"? I thought that they are used for simultaneous events only.
Now coming to your question.
I can't really understand how "lying" be destructive. "Social interactions" can be destructive and "can signal mental problem" but "lying"...
Yes A has amibiguity issues because of "they", so the answer has to be E.
I have posted the OE in page 2.
First of all Marcab, pronoun ambiguity is really an issue which SHOULD not be considered as an initial eliminator of answer choices in the GMAT
If you want I can give you proofs of official questions in which the correct answer choice has ambiguous pronouns and OG 13
has more that 6 of these questions.
Consider the following.
Jack and Bill have a joint account, yet he hardly uses it.
Here "he" is really ambiguous, because there is ABSOLUTELY no way to tell which one is "he" referring to.
However consider this one,
Jack is much fatter than Bill; he weighs more than 200 pounds.
Here, however "he", albeit ambiguous, logically refers to Jack.
Plenty of officially correct answer choices have ambiguous pronouns so this is NOT a rule any more. (might make a secondary elimination technique though).
While implies two things.
1. Simultaneity: example: I was working out while I was watching TV.
This implies two actions which occur at the same time.
2. Contrast: example: While my weight loss was temporary, it gave my a confidence-boost.
Hope its clear the way "while" works.
Now coming to this question, it is clear that while implies a contrast here.
While recognizing that lying often facilitates social interactions, psychiatrists are seeking to determine when they become destructive and which kinds of mental problems they can signal.
A. they become destructive and which kinds of mental problems they can signal
B. they become destructive and the mental problems that are signaled by them
C. it becomes destructive and what are the kinds of mental problems they signal
D. it becomes destructive and the mental problems that are signaled by it
E. it becomes destructive and which kinds of mental problems it can signal
Here is how I would approach the problem:
Meaning: This sentence means: although lying has some good effects, it also have something bad.
It means that lying does help in social interactions but it also becomes destructive and create mental problems. (for example one can become a pathological liar.
So while is used a contrast word here.
Also another way to figure out that it is lying that is destructive and not the social interactions:
Psychiatrists are recognizing the fact that LYING is doing stuffs such as facilitating social interactions.
So it is probable that psychiatrists are talking about LYING again, when they are talking about mental problems and destruction.
Once that is figured out, the rest just becomes a pronoun antecedent agreement question.
D is HORRIBLE because it mixes active and passive (GMAT ear comes to use here)
Does this help?