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Even at the first glance I got it wrong then I applied what Mr.Charles(aka gmat ninja) told me, I might be wrong here but try replacing the "it" with what word is representing, now after after substituting the word you can see why the it statements are wrong
Thank you
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Bunuel
The famous battle depicted in the movie took place in England, and many people assume that it was Ireland.

(A) and many people assume that it was
(B) many people assuming
(C) not what many people assume
(D) not, as many people assume, in
(E) but many people assume it to be



Official Explanation:



Answer: D

The original sentence implies a contrast, so the use of and distorts the meaning of the sentence. D uses not correctly to show the contrast inherent in the sentence and also uses in before Ireland to make the parallel structure correct. Thus, D is the correct answer.

B. In the absence of a connecting word, there is no logical connection between the part before and after the comma.

C. There needs to be a preposition in before Ireland to make this parallel to the earlier part.

E. Gets the contrasting connector but right, but you still need an in before Ireland to make it parallel with the phrase in England used earlier in the sentence
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