Technically, yes, "arose" can be parallel to "evolved."
But notice how in choice (E) we have, " the music {...} arose from an oral tradition that (1) began as {X} and (2) only gradually evolved into {Y}." With this phrasing, we
expect both (1) and (2) to refer to the oral tradition: the tradition began as one thing but then evolved into another. The logical flow is perfectly clear.
In (C), we have, "Robert Johnson made music that arose from an oral tradition beginning as {X} and only gradually evolved into {Y}." Again, we are told that the oral tradition began as one thing, so we naturally
expect that we are going to be told what it is now (or what it evolved into) -- we
expect that "only gradually evolved into the blues" refers to the oral tradition.
But upon analyzing the parallelism, we realize that "only gradually evolved into the blues" CANNOT refer to the oral tradition. Instead, it must refer to the music, and this alters the meaning. The confusing parallel structure makes it very easy for readers to interpret this sentence in multiple ways. In other words, the meaning is unclear.
In (E), however, the parallelism
naturally lends itself to a single logical meaning. Does that make (C)
incorrect? Maybe not. But it's certainly a vote in favor of (E) over (C).

[/quote]
GMATNinja I don't understand the part of C having multiple ways by which one can interpret the //ism. I tried reading this post and option C umpteen times but in vain. My head is spinning. Could you please elaborate a bit on the //ism in C? To me the //ism just looks fine like E. Curious to know your thoughts. Many thanks