E can not be the answer choice, because it unnecessarily indulges in putting the relative pronoun - which - the reference of which can be nothing and nothing but the Indian Ocean.
On the contrary, D does not fall into the trap, by providing an appointive modifier- the largest of the modern era – one that is permitted to modify the entire preceding phrase, namely, -the tsunami in the Indian Ocean – rather than simply the noun it touches
We can dispense with A because the entire world can not be resulting from the destruction.
B is obviously awkward and C suffers the same malady of wrong modification as in E.
Incidentally, a somewhat similar question that has been posted in some
OG or1000 series goes as follows.
In A.D. 391,
resulting from the destruction of the largest library of the ancient world at Alexandria, later generations lost all but the Iliad and Odyssey among Greek epics, most of the poetry of Pindar and Sappho, and dozens of plays by Aeschylus and Euripides.
A) Resulting from the destruction of the largest library of the ancient world at Alexandria,
(B) the destroying of the largest library of the ancient world at Alexandria resulted and
(C) because of the result of the destruction of the library at Alexandria, the largest of the ancient world,
(D) as a result of the destruction of the library at Alexandria, the largest of the ancient world,
(E) Alexandria’s largest library of the ancient world was destroyed, and the result was
The OA is D in this case, the choice with the appositive modifier.