Demand is a bossy word requiring a subjunctive usage, demand x that y be z, hence answer must be (A)
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Abhishek....

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I'm confused here. Isn't appointed to is used rather than with

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we are differentiating 13 members to 8 members here. So, in non-underlined part, the arrangement of words should be "can appoint only 8" not "can only appoint 8". I may be wrong! Please correct me if i am wrong, expert.
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There's a fair amount of disagreement out there about how important the placement of "only" is. Many of us (myself included) allow a fair amount of flexibility. Others insist that "only" touch the exact word it is meant to apply to, or at least that it come as close as possible.

Since the question doesn't give us the option to put "only" next to "eight," clearly the author wasn't concerned about this. Would the GMAT use "only" in this way? I can't say for sure. If anyone wants to dig up some examples, we can go over them, but I'd suggest a little leeway here unless we see a clear split in the use of only. Certainly, if the only significant difference between two answers were "only appoint eight" or "appoint only eight," I'd go for the latter.
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As the sentence uses perfect past participle, so the rest of the sentence must be in the same tence.

Option B incorrectly uses is tasked, so is option C.

Option D incorrectly uses noun action instead of Verb.
Option E is conveys incorrect meaning.

So option A is grammatically correct and meaningful.

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Abhishek

Where is the verb, demand or demanded in any of the choices? There is only has determined in the non-underlined part, holding good for all the five choices.
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"DEMAND/DEMANDED" is not in any of choices.

generis

I also fell for this and marked B. I thought the tone of the word determine is NOT SUBJUNCTIVE .
Hence I rejected A.

But you mentioned that it can be used as a bossy verb. Is that correct?? Is the OA A correct??
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Generis,

Thanks for the new info; I did not know that 'determine' is included in the list of the subjunctive verbs.

The second thing was the implication of the Word 'Senate'. I used to think that Prime Minister is usually the supreme authority and that nobody could bind him. On the contrary, it looks as though the Jamaican Senate can mandate the P.M. This is also new information to me.
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Hi surbhi1991.

Given that there is nothing clearly grammatically incorrect in (B), you ask a great question.

Here is the sentence created via the use of (B).

The Jamaican Senate has determined that the prime minister is tasked with appointing thirteen members to its panel, while the opposition's leader can only appoint eight.

Because that sentence uses the indicative voice wording "is tasked," that sentence conveys that the Senate has figured out that the prime minister IS tasked with appointing thirteen members.

While that scenario is possible, it's not likely that the point of the sentence would be that the Senate has, say, investigated and figured out how the government works.

Here's the sentence created via the use of (A).

The Jamaican Senate has determined that the prime minister be tasked with appointing thirteen members to its panel, while the opposition's leader can only appoint eight.

Because that sentence uses the subjunctive voice wording "be tasked," that sentence conveys that the Senate has, basically, made a command, the command that the prime minister be tasked with appointing thirteen members.

This scenario is much more likely than the one described by the sentence created via the use of (B).

Having said all that, I would add that this is not an official question, and choice (B) in this question is not quite as incorrect as an incorrect answers to official GMAT Sentence Correction questions generally are, as what the version created via the use of (B) conveys is, while unlikely, certainly not impossible.
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