Native to the warmer parts of southern Africa, the mopane worm, a larg

Native to the warmer parts of southern Africa, the mopane worm, a large caterpillar consumed by millions of Africans and that resembled silkworms, are often canned in tomato sauce or chili sauce to enhance flavor.

This is an easy question.
It tests your ability to understand modifiers properly.
The meaning of the sentence is that A mopane worn are often canned in ..... We are given additional information about mopane worm i.e they are consumed by millions and resembled silkworms.

Now let's get to POE:-

(A) consumed by millions of Africans and that resembled silkworms
This is incorrect by and That together does not have anything in parallel to modify.

(B) consumed by millions of Africans and resembling silkworms
This is the correct choice. In case you are confused Consumed is a verb ed modifier and resembling is also a verb ed modifier, Hence they both are parallel and are modifying A large caterpillar.

(C) that is consumed by millions of Africans and that, resembling silkworms
This again is not parallel, Comma after that is incorrect.

(D) that is consumed by millions of Africans and it resembles silkworms
This again is incorrect, IT is ambiguous in this case.

(E) consumed by millions of Africans and that, resembling silkworms
Again comma that changes the meaning, Hence this is incorrect.

IMO:- CHOICE B