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Irrespective of the source, I will attempt to explain the answers:
If..then type of sentences are hypothetical to say the least. In such sentences the tense of the then clause depends on the tense of the if clause.
Quoting the following 3 situations described in Aristotle's SC Grail:

PRESENT TENSE - WILL + Base Verb
If you exercise you will become healthy

PAST TENSE - WOULD/COULD + Base Verb
If you exercised you would become healthy

PAST PERFECT TENSE - WOULD/COULD + Have + Past Participle
If you had exercised you would have become healthy

(A) If all the local candidates would have participated in the debate. Incorrect reason stated in scenario 3

(B) If all the candidates had engaged in local debate. Incorrect. Changes the meaning.

(C) If all the local candidates had participated in the debate. Correct. Fits scenario 3 stated above.

(D) Debating as they should have. Incorrect. Changes the meaning.

(E) After a debate. Incorrect. Changes the meaning.

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