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A) that sales are alarmingly declining is that the design department knows little about marketing and strategy . Incorrect as C is better

B) that sales are alarmingly declining is because the design department knows little about marketing and strategy . Incorrect

C) for the alarming decline in sales is that the design department knows little about marketing and strategy . Correct

D) that sales are alarmingly declining is that the design department knows little about marketing as well as strategy . Incorrect (wordy)

E) that sales are declining alarmingly is that the design departments knows little about marketing and strategy . Incorrect

Hence, OA is (C).
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