A local group had planned a parade for tomorrow, but city hall has not

A local group had planned a parade for tomorrow, but city hall has not yet acted on its application for a permit. The group had applied for the permit well in advance, had made sure their application satisfied all the requirements, and was clearly entitled to a permit. Although the law prohibits parades without a permit, the group plans to proceed with its parade. The group's leader defended its decision by appealing to the principle that citizens need not refrain from actions that fail to comply with the law if they have made a good-faith effort to comply but are prevented from doing so by government inaction.

This passage gives us 2 conditions to meet so that other cases are similar to this one:

1º Keep doing the action even if we have no permit
2º Not having the permit because of government inaction

Which one of the following actions would be justified by the principle to which the leader of the group appealed in defending the decision to proceed?

(A) A chemical-processing company commissioned an environmental impact report on its plant. The report described foul odors emanating from the plant but found no hazardous wastes being produced. Consequently, the plant did not alter its processing practices.

This passage doesn't talk about a permit or license, but about a report. And in case we considered a report as the permit, it can be considered as permit given, because it says report didn't find a bad thing in the process so the plant could still undergo its normal operations

(B) A city resident applied for rezoning of her property so that she could build a bowling alley in a residential community. She based her application on the need for recreational facilities in the community. Her application was turned down by the zoning board, so she decided to forgo construction.

The application was turned down. This breks point 2 (not given because of government inaction)

(C) The law requires that no car be operated without a certain amount of insurance coverage. But since the authorities have been unable to design an effective procedure for prosecuting owners of cars that are driven without insurance, many car owners are allowing their insurance to lapse.

This breaks down point 2, because it is not about government inaction, but about an inefficient action from the goverment

(D) A real-estate developer obtained a permit to demolish a historic apartment building that had not yet been declared a governmentally protected historic landmark. Despite the protests of citizens' groups, the developer then demolished the building.

It obtained the permit so breaks point 1

(E) A physician who had been trained in one country applied for a license to practice medicine in another country. Although he knew he met all the qualifications for this license, he had not yet received it one year after he applied for it. He began to practice medicine without the license in the second country despite the law's requirement for a license.

It fulfills point 1 because it keeps doing the practice.
It fulfills point 2 because it doesn't have the permit because government inaction (shown in this sentence:he had not yet received it one year after he applied for it)

OPTION E