The
pronoun that is required here to refer to Holland is ‘
it’. We can use this to eliminate most of the options.
We can scan the options for 'its':
(A) In Holland, a larger percentage of the gross national product is spent on defense of
their coasts from rising seas than is spent on military defense in the United States.
(B) In Holland
they spend a larger percentage of
their gross national product on defending their coasts from rising seas than the United States does on military defense.
(C) A larger percentage of Holland's gross national product is spent on defending
their coasts from rising seas than the United States spends on military defense.
(D) Holland spends a larger percentage of its gross national product defending
its coasts from rising seas than
the military defense spending of the United States.
(E) Holland spends a larger percentage of its gross national product on defending
its coasts from rising seas than
the United States does on military defense.
Eliminate Options A, B and C. Option D incorrectly compares Holland with ‘the military defense spending’.
Eliminate. Option E is the best choice. Hope this helps!