Thanks for responding.
The correct answer is supposedly "A". The explanation being, "past perfect is required because there are two actions, one ending before the other." This question was from a Kaplan
However, I don't understand this explanation, because the clause that uses past-perfect ('..municipal will had made the boast a reality...') happened *after* the 'Sanfransiscans mocked the claim.' The past-perfect, should be in the first clause and not the second. My understanding of past-perfect is that it's used to show the action which happened first. Would you agree?
I chose 2, because both the actions happened in the past so the 2nd clause, which is underlined, can't use a future tense and therefore I used simple tense.
BTW, I didn't choose 4 because it modified municipal from noun, in the original sentence, to adverb.