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I also selected C as the sentence needs type 2 condition. However, are we missing IF in option C? I know that in IF...THEN conditional statement THEN is optional. I did not know that IF is also optional. I was expecting to see 'If it were to fully implement all of its regulations'
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In option C - isn't "fully" and "all" redundant?

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Official Explanation

The original sentence poses two problems. First, the sentence clearly intends to express a hypothetical or contrary-to-fact situation; yet the underlined phrase does not use the subjunctive were. Second, fully and completely are redundant; one of them should be deleted. (C) corrects both problems without creating a new one. (B) corrects the redundancy problem by deleting fully. However, it incorrectly uses was instead of the subjunctive were.

The correct answer is (C).
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scranjith
In option C - isn't "fully" and "all" redundant?

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The agency could be implementing some of its regulations fully (i.e. 100% implementation of few regulations) or it could be implementing all of its regulations fully (i.e. 100% implementation of 100% regulations). In this sense, 'all' and 'fully' are not redundant.
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