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I eliminated A and B as they have 'which' without a preceding comma. I briefly searched the gmatclub grammar guide and it seems to use 'which' in many places that seem more appropriate for 'that'. I couldn't find a section clearly explaining use of 'which'.

https://gmatclub.com/forum/although-she ... l#p1127503
"Rule 2 - "which" needs to be preceded by a comma (NO EXCEPTIONS. On the other hand "that" must not be preceded by a comma)."
and e-gmat comes along and says about the above "hafizkarim, you are absolutely right in terms of your understanding of "which" modifiers"
https://gmatclub.com/forum/although-she ... l#p1127531

"which always goes with comma. If you don't see comma before which - eliminate

Exception to this rule :
It's true we need a comma before "which" but in case "which" is preceded by a preposition such as "in which", ''of which'', ''from which'', etc. We don't need a comma in such cases before "which"."
https://gmatclub.com/forum/when-to-use- ... ml#p881720

""That" is used for essential modifiers, but "which" is used for non-essential modifiers"
https://gmatclub.com/forum/that-which-u ... ml#p736239
It seems to me that "which, in response, takes action to diminish that signal." is not a non-essential modifier

Please help!
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