MAGOOSH Official Explanation:
Split #1: the mystery pronoun! In (A) & (E), the subject of the second verb (are expanding/have been expanding) is the pronoun “they.” This is a mystery pronoun: it has no valid antecedent. There is no one in the sentence who qualifies as the “they” to which this pronoun refers. The GMAT can’t stand mystery pronouns. (A) & (E) are wrong.
Split #2: the sentence sets up a contrast: original narrow focus of the amendment vs. later, a very wide applicability. A contrast word would work better here. The word “but” in (A) & (B) is very good. This is a funny split, because while “but” is preferable to “and”, the word “and” is not so wrong that we could eliminate those choices on this basis alone.
Split #3: infinitive of purpose. The phrasing “adopted to give” is grammatical correct and concise and powerful --- exactly what the GMAT loves. By contrast, the phrasing “adopted in order that black be given” --- wordy and indirect, what the GMAT doesn’t like: (A) is wrong. The phrasing “adopted by giving” changes the meaning to something quite different, so this doesn’t work for this sentence: (E) is wrong.
Split #4a: look at the tenses of the second verb:
(A) “they are expanding it” --- are they doing this right now? Use of the present progressive does not make sense. This is wrong.
(B) & (E) “has been expanding” ---- has been happening and is still happening: that’s correct.
(C) “was expanding” --- did it stop? That’s not the right meaning. This is wrong.
(D) “has expanded” --- past but still going on: that’s correct.
On the basis of this split, we can eliminate (A) & (C). Now, given that the correct tense would be that of either (B) or (D) or (E), we can proceed on to:
Split #4b: the opening split, “was adopted” (simple past) in (B) vs. “had been adopted” (past perfect) in the other four. We need the past perfect when we are showing that some event happened earlier than some other past event. The past perfect tense establishes a contrast with the simple past. Here, though, the other verb, from (B) or (D) or (E), is going to be either “has been expanding” or “has expanded”, both present tense verbs. (Technically, “has been expanding” is the present perfect progressive, and “has expanded” is the present perfect.) Both of these are fundamentally based in the present tense, so all we need is the simple past tense. The past perfect is unnecessary and, in fact, incorrect in this context. (B) is the only choice.
For all these reasons, (B) is the best answer.