Federal legislation establishing a fund for the cleanup of sites damaged by toxic chemicals permits
compensating state governments for damage to their natural resources but does not allow claims for injury to people.
Option Elimination -
(A) compensating state governments for damage to - "compensating" - Gerund acting as a Noun is parallel to "claims" - Noun. Compensating....for damage to is parallel to claims for injury to. Ok.
(B) compensating state governments for the damaging of - breaks parallelism and conveys a wired meaning as if governments are paid for damaging their natural resources instead of damage to their natural resources, which is the intended meaning. Wrong.
(C) giving state governments compensation for damaging - "giving" and "compensation" - redundant. "for damaging" same issues.
(D) giving compensation to state governments for the damage of - "giving" and "compensation" - redundant.
(E) the giving of compensation to state governments for damaging - "giving" and "compensation" - redundant. "for damaging" same issues.