I’ll explain the command subjunctive in bit more detail.
Command subjunctive is used with certain bossy verb such as require or propose. Bossy verbs tell the people to do things.
The Subjunctive construction with a bossy verb is always as follows:-
Bossy Verb + THAT + Subject + Command Subjunctive. Eg- We PROPOSE THAT the school board DISBAND.
Take note of the following incorrect construction.
Wrong: We PROPOSE the school board DISBAND. (You must use the word that)
Wrong: We PROPOSE THAT the school board DISBANDS.
Wrong: WE PROPOSE THAT the school board should DISBAND.
Complicating matters, not every bossy verb uses the command subjunctive. In fact, with some of the most common bossy verbs, such as want, you cannot use the command subjunctive, instead, you must use an infinitive (to+ the bare form)
Wrong- The vice-president WANTS THAT she GO to the retreat.
Right: The vice- president WANTS her TO GO to the retreat.
Which bossy verbs take which construction: subjunctive or infinitive? Unfortunately this issue is Idiomatic.
These verbs take ONLY the command Subjunctive when indicating desire:
demand, dictate, insist, mandate, propose, recommend, request, stipulate, suggest.
Note that propose can take an infinitive when there is no second subject. Eg- the attorney proposed to meet the following day.
These verbs take ONLY the infinitive.
advice, allow, forbid, persuade, want.
We allow HIM TO BE here.
These verbs take EITHER the command subjunctive OR the infinitive. Ask, beg, intend, order, prefer, urge, require (pay particular importance to require)
We require THAT he be here. (Active Verb) OR We require HIM TO be here. (Passive verb.
Something is required to be done)
A few bossy verbs most notably prohibit, take other construction altogether.
Right: The agency PROHIBITED Gary FROM WORKING on Weekends.
NOTE- A few bossy verbs can be used in a non-bossy ways. Her presence suggests that she is happy. In this context, suggests means “probably”; it is not acting bossy. Kindly pay attention to the meaning!
Coming back to the original question, It will be evidently clear that the answer choice ‘D’ follows the rule of command subjunctive.
Setting a precedent that lasted more than a century, George Washington disappointed the people who insisted(bossy verb)+ THAT (mandatory with this verb) +he(subject)+ run (Command Subjunctive) for a third term as president.Hope this helps.
Note:- Most of the above note was taken from
MGMAT Sentence correction text book.