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In my opinion (and I got this one right on the practice CAT)

A and C are right out because "the Blitz and the refusal to surrender London" is awkward-sounding and doesn't follow logically from the introductory clause.

B is incorrect because it wasn't London's Blitz, it was the German Blitz.

So between D and E we have to decide whether "took up ... significance" or "took on ... significance" is the correct idiom - took up is incorrect idiom for this sentence, therefore D is the correct answer.

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