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IMO C

As per my understanding A is wrong because of two reasons -
1. The usage of "Due to" and "on the basis" in the same sentence- Redundancy error
2. Due to a ........between patients using the drug and those using a placebo, the Food and Drug Administration refused to approve it on this basis. ----- IT refers to placebo rather than Drug
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Due to a negligible difference in Phase III results between patients using the drug and those using a placebo, the Food and Drug Administration refused to approve it on this basis.

(A) Due to a negligible difference in Phase III results between patients using the drug and those using a placebo, the Food and Drug Administration refused to approve the drug on this basis. Incorrect

......on this basis - redundant

(B) The Food and Drug Administration refused to approve the drug based upon a negligible difference in Phase III results between patients using it and those using a placebo. Incorrect

based upon - wrong

(C) Due to a negligible difference in Phase III results between patients using the drug and those using a placebo, the Food and Drug Administration refused to approve the drug. Correct

(D) Due to a negligible difference in Phase III the results between patients using the drug and those using a placebo, the Food and Drug Administration refused to approve the drug on this basis. Incorrect

......on this basis - redundant

(E) Due to reason of a negligible difference in Phase III the results between patients using the drug and those using a placebo, the Food and Drug Administration refused to approve the drug on this basis. Incorrect

the results - wrong
......on this basis - redundant
Due to reason - wrong
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