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Quote:
"they will be flying to Vermont" is no different from "they will be flying their children to Vermont"
Humans are flying in both the cases. We know that it means they will take a flight.

(C) clarifies that they will be flying their children to Vermont. Otherwise, the first part of the sentence is meaningless.

Look at (B):

B) so they will be flying to Vermont, where their summer house is located, next Sunday

They are concerned about their children so they will be flying to Vermont where they have a summer house. This doesn't make much sense. Are they taking their children to summer house? Are their children already in summer house? How is their concern relevant to their flying?

By the way, this is not a GMAT type sentence.

VeritasKarishma Thank you for the explanation. It is much clear now :please: :)
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