Parliament did not accord full refugee benefits to twelve of the recent immigrants
because it believed that to do it rewards them for entering the country illegally.
(A) to do it rewards
(B) doing it rewards
(C) to do this would reward
(D) doing so would reward
(E) to do it would reward
A. it cannot refer to the whole clause (Parliament did not accord full refugee benefits to twelve of the recent immigrants)
B. Same as A.
C.In GmatLand demonstrative pronouns are better used as an adjective.So usage of this
E.Same as A