The reserve bank of India examines macro-economic environment and external
conditions, and in using the guidelines it derives from these analyses, can decide the fiscal and monetary policy.
A. conditions, and in using the guidelines it derives from these analyses, can decide
misplaced "and", it should be before the comma, not with the modifier
B. conditions, and it uses the guidelines derived from these analyses in deciding
"the bank examines" is parallel with "it uses". However the scope changes slightly as the original sentence emphasizes "examines" and "decides" rather than "examines" and "uses"
C. conditions and, in using the guidelines derived from these analyses, deciding
examines is not parallel with deciding (here it is used as a participle, not a verb)
D. conditions and, using the guidelines derived from these analyses, decides
examines is parallel with decides, modifier is in proper place, the meaning is intact
E. conditions and, in its use of the guidelines it derives from these analyses, it decides
modifier is a mouthful
I do not have OA for this. I have marked
. Please comments