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Abhi077
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Indonesian geologists have discovered evidence that indicates that the archipelago is formed from a volcanic sediment, and its land originally erupting as a result of major geological activity.

It should be evidence that indicates or evidence to indicate.
The land has already been erupted so the correct usage is erupted.
Also the newly found evidence suggests that the archipelago is formed. "is formed" should be used.

A. that indicates that the archipelago is formed from a volcanic sediment and its land originally erupting

"that indicates that" structure is redundant and that land has already been erupted, so the correct usage is erupted.

B. that has indicated the archipelago formed from a volcanic sediment, its land originally erupting

C. indicating that the archipelago had formed from a volcanic sediment with its land originally erupted

D. to indicate that the archipelago had formed from a volcanic sediment and its land originally erupted

E. to indicate that the archipelago is formed from a volcanic sediment and that its land originally erupted

"to indicate" is used, "is formed" is used and "erupted" is used. So E is the correct answer.
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First thing: Please look into the underlining. The phrase'that indicates' should also be underlined.
Although i went with E (best of the lot) , i am still struggling with the usage of [/u] to indicate [u] . DOes this not mean that the scientists had a purpose to find the evidence. Is that fine on GMAT actual exam ?
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Meaning is the key here.
A. Parallelism issue. evidence that indicates that X and Y. Here X and Y are not parallel.
B. Tense issue. Present perfect is used when an action started in the past and finished in the present. For instance, I have just completed my work. For research findings, this may not be the apt tense. Nevertheless, 'its' land creates ambiguity. If you want to stay conservative, hold on to B.
C. Volcanic sediments form after eruption. It's illogical to use past perfect for volcanic sediments. Eruption had occurred, and then the sediments are fined.
D. Same as C
E. The answer. No flaws

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Formed in the answer here is acting as adjective, not verb. As a result, Option E is better, not the best. If it had not been there, I would have selected option B.
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