It is called a palace, but the ornately adorned Taj Mahal is actually the largest tomb in the world, which is surrounded by beautiful lakes with fountains and flower gardens.
A. It is called a palace, but the ornately adorned Taj Mahal is actually the largest tomb in the world,
which is surrounded
B. Although it is called a palace, actually the ornately adorned Taj Mahal is the largest tomb in the world,
which surroundsC. Though called a palace, but it actually is the largest tomb in the world, the ornately adorned Taj Mahal
surroundedD. Despite being called a palace, the largest tomb in the world is actually the ornately adorned Taj Mahal,
surroundingE. Though called a palace, the ornately adorned Taj Mahal is actually the largest tomb in the world,
and is surrounded
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B / C / D can be immediately eliminated because Taj Mahal cannot "surrounds by" or "surrounding by", and "Taj Mahal surrounded by..." requires a verb.
A is eliminated because "which" modifies the nearest noun, which in this option is "tomb".
E is correct - (Taj Mahal is the largest tomb) and (is surrounded by lakes ...), the construct is parallel and grammatically correct.