Bunuel wrote:
12 Days of Christmas GMAT Competition with Lots of FunNear the end of the Cretaceous period, a range of volcanoes in western India called the Deccan Traps
was thought to be the site of several climate-altering eruptions that led to many extinctions, including the demise of the dinosaurs.
(A) was thought to be the site of several climate-altering eruptions that led
(B) was thought to be the site of several climate-altering eruptions that could have led
(C) were thought to have been the site of several climate-altering eruptions that led
(D) is thought to have been the site of several climate-altering eruptions that led
(E) was thought to have been the site of several climate-altering eruptions that led

Near the end of the Cretaceous period, a range of volcanoes in western India called the Deccan Traps was thought to be the site of several climate-altering eruptions that led to many extinctions, including the demise of the dinosaurs.
(A) was thought to be the site of several climate-altering eruptions that led
(B) was thought to be the site of several climate-altering eruptions that could have led
(C) were thought to have been the site of several climate-altering eruptions that led
(D) is thought to have been the site of several climate-altering eruptions that led
(E) was thought to have been the site of several climate-altering eruptions that led
Deccan Traps is the name of range of volcanoes so we would consider it as singular entity, so (C) is out.
We are talking about an event in the past which has no relation with the present(Near the end of the Cretaceous period was the site in the past which later led to extinctions). (D) is out.
Use of 'have been' means it is still going on which is not the case. (E) is out.
Since, a thought is being expressed, use of 'could have' fits the sentence.
Correct option - (B)