Answer is E.Logic of the passage:For business telling government to -> Leave them kids alone, let them do as they wish.
Since the word paradox has been used, what happens next should contradict the spirit of independence emphasized in the first part.
Hence, for sexual behavior telling government -> how dare they?! Tell them to stop.
Also, notice that its about
‘private morality’. Hence
any option that discusses social morality or morality in public sphere is irrelevant.
Hence, (B) and (C) can be eliminated.
Now Option (A) specifically talks about one era. The question speaks only about restriction not defining codes of which era should be implemented. Hence, (A) is extreme in its treatment of the conservatives.
Option (D) talks about more freedom to individuals which doesn’t sit well with the structure of the sentence.
X (however, but, instead, paradoxically, surprisingly) Y ==> Part Y is opposite in meaning/logic to part X
Hence, (D) is diametrically opposite and hence, the worst possible answer.
Option (E) talks of increased regulation by government in private sexual matter. This is exactly opposite of what confederates demand in business. It fits the structure of the sentence and fits the meaning too. Hence,
option (E) is correct.