In reference to the current popularity of electronic mail, postal serv

E - Who is referring to email? postal services.. and they are doing it in the present. so present tense

I think E is the best option.

B,C,D can be eliminated due to their use of 'about'.

Between A & E, I choose E becasuse 'Referring to' is parallel to 'are being limited'.

Why is anxiety "about" wrong? You can't have anxiety "about" an upcoming exam? Is it "over" or "regarding" or something?

- expressed anxiety about their prospects ...
- expressed anxiety that their prospects ...
=> the use of about here distorts meaning. if you read the sentence with about it sounds like the postal services were not anxious because their prospects...
If I'll use your example "anxious about the exam" I can transfer it to "anxious that the exam will be hard"
you can see that the two sentences mean two different things. in the first you are probably anxious because the exam date is nearing or something like that. In the second you are anxious because you think that the exam will be hard and not because anything else.
Hope that helps..

IMO, E.

"about" is a preposition, so it can be followed only by a noun. In this case, we have a clause.

If I am right, I think I deserve kudos.

think it may be tense problem- either it could be have expressed or simply express. Look at 2 things- current popularity of electronic mail and are being limited.

ALSO, (somebody please correct me if I am wrong) I think a participle modifier "Referring .... " is preferred over a prepositional modifier "In reference to" for the noun "postal services".
eg. "According to ...." is preferred over "In accordance to/with ..."
eg. "Regarding ...." is preferred over "In regard to/with"

First of all a few concepts:

This is a generalization observed by the postal people. . Use of present tense ‘express' is the most proper way of describing the verb. So choices that use ‘expressed. i.e., A, B, and D are out.

In C the use of ‘when referring to’ restricts the meaning to the narrow timing of reference, or even whenever the reference is made to. A generalization is however broader than that and hence the use of 'referring to' is more appropriate.
That makes E the choice.

(A)In reference to the current popularity of electronic mail, postal services frequently expressed anxiety that
(B)Referring to the current popularity of electronic mail, postal services frequently expressed anxiety about
(C)When referring to the current popularity of electronic mail, postal services frequently express anxiety about
(D)With reference to the current popularity of electronic mail, postal services frequently expressed anxiety about
(E)Referring to the current popularity of electronic mail, postal services frequently express anxiety that.

When you use a preposition such as ‘about’, you should follow it up with a noun or noun phrase (without a working verb). In B, C and D, the preposition ‘about’ is followed by a full clause ‘their prospects for remaining profitable are being limited by their antiquated business model.’ This is grammatically in correct.

On the contrary, E uses a proper subordinate connector ‘that ‘to introduce the subordinate clause. Hence E is grammatically correct.

Interestingly, here is a similar 1000 SC version. Q. N0. 397

397. In reference to the current hostility toward smoking, smokers frequently expressed anxiety that their prospects for being hired and promoted are being stunted by their habit.
(A) In reference to the current hostility toward smoking, smokers frequently expressed anxiety that
(B) Referring to the current hostility toward smoking, smokers frequently expressed anxiety about
(C) When referring to the current hostility toward smoking, smokers frequently express anxiety about
(D) With reference to the current hostility toward smoking, smokers frequently expressed anxiety about
(E) Referring to the current hostility toward smoking, smokers frequently express anxiety that

Needless to say, the answer choice is E here also.

(B) Referring to the current popularity of electronic mail, postal services frequently expressed anxiety about
(E) Referring to the current popularity of electronic mail, postal services frequently express anxiety that

The critical difference between B and E is:

'B' uses ‘about’, which is a preposition. A preposition can only be followed by a noun/ pronoun or noun phrase and not a verbed clause. However, what you have after about is a verbed clause. This is grammatically wrong. So one can confidently remove B, C and D for using 'about' before a clause.

On the contrary E uses 'that', which is a subordinate conjunction and what follows conjunction must be a verbed clause. That is what we have in E.

In gist, what decides the correctness after 'about' or 'that is what follows these critical words. We can use 'about' and still make B correct as under.
Referring to the current popularity of electronic mail, postal services frequently expressed anxiety about their prospects for being profitable becoming limited by their antiquated business model.

I might sound dumb in asking this question but how can postal services express anxiety?

'postal services' means , people concerned with postal services.

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