Lets start with meaning analysis.Here the meaning can be inferred easily.
Councilman proposes a plan to beautify the city and attract tourists.
His opponents oppose the plan by stating that it wont attract tourists and is overly expensive.
Also , the plan has been compared to putting lipstick on bulldog ie putting lipstick on bulldog wont beautify the bulldog similarly the councilman proposal of city dump wont beautify the city.
Error Analysiswhich refers to the closest noun. Hence here which refers to TOURISTS. This reference is incorrect.
The intended meaning is .. opponents compare the proposal of councilman to putting lipstick to bulldog.
Answer Choice AnalysisA.
INCORRECT.
B.
INCORRECT. ( Same reason - WHICH)
C.
INCORRECT.
Not unlike putting lipstick to bulldog is grammatically incorrect and the sentence structure is inappropriate
D.
CORRECT.
Comparing is the verb-ing modifier , modifying the previous phrase. (His opponents......)
Here IT refers to the PLAN
E.
INCORRECT.
This is grammatically correct but meaning wise incorrect.
Intended meaning is putting lipstick on bulldog.
Not the bulldog already wearing the lipstick.
Thanks.