Not only did the systematic clearing of forests in the United States create farmland (especially in the Northeast) and gave consumers relatively inexpensive houses and furniture, but it also caused erosion and very quickly deforested whole regions.
(A) Not only
did the systematic clearing of forests in the United States create farmland (especially in the Northeast) and
gave consumers relatively inexpensive houses and furniture, but it also
"did" and "gave" are not parallel to each other. "I did the assignment and gave her candy" is not parallel
(B) Not only did the systematic clearing of forests in the United States create farmland (especially in the Northeast), which gave consumers relatively inexpensive houses and furniture, but also
"Not only did the systematic clearing of forests in the United States create farmland (especially in the Northeast),
giving consumers relatively inexpensive..." sounds much better
(C) The systematic clearing of forests in the United States,
creating farmland (especially in the Northeast) and giving consumers relatively inexpensive houses and furniture,
but alsoit is choppy. What did the "The systematic clearing of forests in the United States" do? Where is the connector between the clearing of the forests and the creating of farmlands?
(D) The systematic clearing of forests in the United States created farmland (especially in the Northeast) and gave consumers relatively inexpensive houses and furniture, but it also
Clear and parallel. Not wordy. The clearing of forests created X and gave customers Y and Z, but it also ...
NOTE: we can use "but it also" without having "not only"... but we cannot have "not only" without "but it also".
(E) The systematic clearing of forests in the United States
not only created farmland (especially in the Northeast), giving consumers relatively inexpensive houses and furniture,
but itIf you are going to use "not only" you also have to say "but * also"/"but also". Here we used "not only" but NOT "but it also"
* = wildcard