This is an awful problem. Not only is E awkward, but "which" is ambiguous. On top of that, using E does not even form a sentence.A
is incorrect because it is implying that the wooden leg is scaring the children with itself. That makes no sense and is awkward.B
is incorrect because one must say "which scared" or "which is scaring". "Which scaring" is incorrect.C
is incorrect because it is awkward. Also, you cannot form a logical sentence from combing C to the non-underlined portion.D
is incorrect because it is awkward.
Rest assured, no problem like this would ever appear on the GMAT. All of those answer choices should be incorrect.
If my post helped you, please consider giving me kudos.