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NithinRaja
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It seems the underlining portion was done incorrectly… I see them in choices including cultural and economic elements and other interest choices not including it. I think this question wasn’t copied correctly or otherwise it would be very easy to eliminate choices because they repeat the same information twice. I don’t think the question writers would make such a silly mistake… or if they did then not worth messing with the question.

My guess the question was not posted correctly. NithinRaja - can you please check?

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Hi All,

Sorry for the confusion. I have corrected the question now.
brightgmat bb. I have added the OA as well to the same.
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NithinRaja - can you please share the explanations to the OA?
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Why is A incorrect and why is D correct? I find D to be ambiguous, don't know what the pronoun is referring to!
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Gprabhumir

I'm not sure why you're saying that D is ambiguous. That's not a common issue on SC, and D uses the same pronoun (it/its) as almost all the other choices (and the non-underlined portion). This pronoun unambiguously refers to the theory. When the pronoun is introduced, THEORY is the only singular noun available, unless for some reason we want to try to stretch and apply it to MARXISM, which doesn't make sense in terms of meaning or structure.

As for A, as others have pointed out, it splices together two independent clauses with a comma, so once we get to the second subject ("scholars"), we can cut without even reading the rest.
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Here main issue is two IC(independent clauses)
IC1 => Mikhail Bakhtin’s theory of the carnivalesque is based on the key principles of Marxism
IC2 => scholars thus commonly regard it as a ‘hybrid’ thought system that can also be applied to both cultural and economic studies even though its primary application is in the analysis of fiction.

are joined with only comma,
the right construction should ";" or ", + FANBOYS" or any word which can connect two ICs such as because, althugh
here according to context the "because" can be used hence option D
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I believe it's pretty much deducible.
See regard...to be is idiomatically awkward and in most cases wrong.
So we can eliminate C and E.
Remaining options are A,B,D.
In B the phrase "since 'it' is based on...." uses the pronoun 'it' ambiguously with no proper antecedent and therefore is wrong.
Among A and D, D is more concise and clearer and thus the correct option.
Hope it helps.
Answer: D
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Steer away from "more concise and clear." The wrong choices will almost always be wrong for an identifiable reason, not just because another choice is better. (This is true for all types of GMAT questions.) In this case, as discussed above, A is incorrect for using a comma to splice independent clauses together. That's an immediate disqualification!
Samin2970
I believe it's pretty much deducible.
See regard...to be is idiomatically awkward and in most cases wrong.
So we can eliminate C and E.
Remaining options are A,B,D.
In B the phrase "since 'it' is based on...." uses the pronoun 'it' ambiguously with no proper antecedent and therefore is wrong.
Among A and D, D is more concise and clearer and thus the correct option.
Hope it helps.
Answer: D
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