The American Congress passed the Neutrality Acts during the mid-to-late 1930s
due to World War I, which took such a toll on the country that the government desperately wanted to avoid dragging into another war.
A quick glance at the answer options shows that we need to decide between "Due to" and "Because of".
Here is a simple trick that I always use - Insert "caused by" in place of due to / because of and read the statement. If it makes sense, keep the "due to" structure. Else, use "because of"...
Clearly, "due to" doesn't fit this statement! (you will realize once you perform the quick check which is explained above
)
Now we know that we have to use "because of". This eliminates options A and B.
A. due to World War I, which took such a toll on the country that the government desperately wanted to avoid dragging--> Eliminated ["due to" issue as explained above]
B. due to World War I that has taken such a toll on the country that the government would desperately want to avoid being dragged--> Eliminated ["due to" issue as explained above]
C. because World War I, which was taking such a toll on the country that the government desperately would want to avoid being dragged--> ...congress passed the act because WW-I, which was taking a toll that govt. would want to avoid being dragged....
Here, 'which was taking' is unnecessarily trying to modify WW-I.. You can also see that this is a wordy answer option.
Also, if you notice the end, the sentence ends with "dragging". Ideally, the govt. wanted to avoid dragging
itself into another war. But this part is not clear with option C.
Eliminate C
D. because of World War I had taken such a toll on the country that the government desperately wanted to avoid dragging--> Again there is this "dragging" issue
Not sure what the govt. is dragging here!
Eliminate D
E. because World War I took such a toll on the country that the government desperately wanted to avoid being dragged--> govt. wanted to avoid being dragged into another war! Sounds good. Let's check again. Here is how I would do it :
The congress passed the act because the war took such a toll on the country that the govt desperately wanted to avoid being dragged into another.
Select E.
That's how I arrived at option E
Hope that helps