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pintukr
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The difference is subtle. E has correct usage of that, 'that' is used to indicate a specific object, Item, person or condition. In this case "dance competition that promoted" is correct since that modifies dance competition while in D "his court that promoted' is not the correct usage of that
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I am confused between D and E but I went with D because it felt more straightforward. Please help

Well I am happy to help :) .

In option D, it seems that court is promoting the discovery of new talents whichis not at all the case
Option E clearly states that dance competitions promote the discovery of new talent

Basically there is a meaning error in option D.

I hope it is clear.
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Chikmukulu, a Bemban chief, organised dance competitions in his court, which promoted the discovery of new talents from various neighbouring clans and the presentation of the latest dance forms.

A. Chikmukulu, a Bemban chief, organised dance competitions in his court, which promoted
B. Dance competitions were held in Chikmukulu, a Bemban chief’s court, which promoted
C. Chikmukulu, who was a Bemban chief in his court, organised dance competitions promoting
D. Chikmukulu, a Bemban chief, organised dance competitions in his court that promoted
E. In his court, Chikmukulu, a Bemban chief, organised dance competitions that promoted

Well in the answer choices above we can easily eliminate A & B because these options use 'which' that unnecessarily modifies courts but the intended meaning is that the dance competitions promoted the discovery of new talents from various neighboring clans and the presentation of the latest dance forms.

In answer choice C the meaning is totally different, so eliminate C

In options D & E 'that' has been used which refers to the noun just before it but if any kind of verb had been used after that it may refer to both singular or plural noun, according to the verb used. So, In D 'that' refers to 'his court' but in E 'that' refers to 'dance competitions' because his court is far away. Thus, meaning wise option E is the best choice.

Hope it helps.
Thank you :) :)
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I think both D and E are correct as a pronoun can jump over a prepositional phrase. However, E is more direct and avoids ambiguity, if any.
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