Found in the wild only in Australia and New Guinea, powerful back legs with long feet distinguish kangaroos from other large mammals.
• powerful back legs with long feet distinguish kangaroos from other large mammals
• powerful back legs with long feet distinguish kangaroos from other mammals that are large
• powerful back legs with long feet distinguish kangaroos from those of other mammals that are large
• kangaroos are distinguished from other large mammals by powerful legs with long feet
• kangaroos are being distinguished from other mammals that are large by powerful legs with
Ask the question what is found in Australia and NG. Obviously not the powerful legs but the Kangaroos. Therefore, after the participial phrase, the kangaroos must come. D and E survive. E is a muddle, forget it. D survives.
Better than second one, because this involves two concepts.
Simple modification issue. D; E changes the meaning, so is out.