OEFirst Glance: In this sentence, some choices begin with the word that and some drop the word that; there may be sentence structure issues going on. Also, the verb tense changes (derives, had derived, derived), so pay attention to the meaning to figure out what verb tense makes sense.
Read the Sentence and Choose a Starting Point: The first that is part of a broader parallel structure: a chemical that X and that Y.
Issue #1: Parallelism: X and Y structure. Compare this structure in the five answers:
(A) that derives from ... and that was first isolated by ...
(B) that had derived ... and first been isolated by ...
(C) derived from ... and that was first isolated by ...
(D) that was first isolated by ... and then derives from ...
(E) first isolated by ... and that derived from ...
It's fine to have that in front of both X and Y or to have it only in front of X. However, it's not okay to have the word that only at the beginning of the Y (second) element but not at the beginning of the X (first) element, so eliminate choices (C) and (E).
Correct: that X and that Y
Correct: that X and Y
Incorrect: X and that Y
Next, check the rest of the parallel structure for the remaining choices. In all three, the two elements both start with verbs, so that's good.
Issue #2: Verb Tense. While choice (B) does use a parallel structure, the verbs are had derived and (had) been isolated (the had has to carry over to the second verb because been isolated, by itself, is not a complete verb form). These verbs are in past perfect form, which is used when you want to talk about the first of two events that happened at different times in the past. In this sentence, there is no second past event that took place later in time—a requirement when using past perfect. The only other verb (digoxin ... is) is in the present tense. Eliminate (B) for using past perfect incorrectly.
Issue #3: Meaning. Answer (D) has a logic problem. It says that digoxin ... was first isolated by someone and then derives (comes) from ... foxglove. It doesn't make sense to say a specific researcher first isolated digoxin and only then did the chemical come from the plant. The chemical was already present in the plant. Then the researcher figured out how to extract/isolate it. Eliminate answer (D) for an illogical meaning.
The correct answer, (A), employs a correct parallel structure: that derives from ... and that was first isolated. It's acceptable for two parallel verbs to be in different tenses, as long as those tenses make sense in the context of the sentence. In this case, it's still true that the chemical derives from foxglove, so that fact should be stated in present tense.