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My answer is (D).

Past perfect or present perfect? The past perfect tense says that an action was completed at a time before another action happened in the past. There is no explicit "another action happened in the past", so past perfect is uncalled for. Eliminate (A) and (B).

In (C), relative pronoun "that" does not play any role in the relative clause "that classrooms across the nation are discussing the emergence of a new species of caterpillar". It should. If we were to change the relative clause to be "that classrooms across the nation are discussing to explain the emergence of a new species of caterpillar", it would be grammatically correct.

In (D), we need to be able to make sense of "narrowed down to two the possible origins to explain the emergence of a new species of caterpillar". It might be a bit jarring to read "two the possible origins“. It actually means,
"narrowed the possible origins to explain ... down to two". The current arrangement is due to the extremely long object for "narrowed down".

(E) is very much the same as (D), but we have to take issues with "it" in "narrowed it down". "It" can stand for the infinitive "to explain the emergence of a new species of caterpillar", but, to me at least, "to explain the emergence of a new species of caterpillar" should modify "two possible origins". We may also argue that we cannot really narrow down an explanation. (E) is a bit tricky to eliminate with conviction.
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From the sentence we can say discussion is ongoing and there is no other action to couple with action of researchers and hence Past perfect tense is not desired. Eliminate A/B
In "c" The sentence says classrooms are discussion
In E "It" refers to "Possible reasons" and makes the sentence illogical in addition to not agreeing in number
D is the correct choice IMO
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During the last month, researchers had narrowed down to two the possible origins that are being discussed in classrooms across the nation to explain the emergence of a new species of caterpillar.

A) had narrowed down to two the possible origins that are being discussed in classrooms across the nation to explain the emergence of a new species of caterpillar -> Past perfect requires two actions. We don't have the 2 actions. Incorrect.

B) had narrowed down to two the possible origins to explain the emergence of a new species of caterpillar that are being discussed in classrooms across the nation -> Same error as A. Incorrect.

C) have narrowed down to two the possible origins that classrooms across the nation are discussing the emergence of a new species of caterpillar -> classrooms are discussing, doesn't make sense. Incorrect.

D) have narrowed down to two the possible origins to explain the emergence of a new species of caterpillar, origins that are being discussed in classrooms across the nation -> It is better than C. Let's keep it.

E) have narrowed it down to two possible origins to explain the emergence of a new species of caterpillar, origins that are being discussed in classrooms across the nation -> "it" is incorrect. We don't need "it".

So, I think D. :)
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The official explanation is here.
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