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My answer is (E). It took me 41 seconds.

(A) Not a sentence. The problem is more evident after we remove the nonrestrictive relative clause.
The theory of plate tectonics positing that ...

(B) "and posits"? There is no verb to be parallel with "posits".

(C) Not a sentence. There is an independent clause from the beginning to "drift", but what follows lacks a subject or / and a conjunction.

(D) Not a sentence. If we remove two nonrestrictive relative clauses, we get:
The theory of plate tectonics

(E) Is a well-formed sentence.
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The theory of plate tectonics + was proposed + posits (must have either verb)
A - which was proposed + positing (not a full sentence)
B - first proposed, and posits (parallelism: no parallel main verb with posits)
C - was proposed, posits (run-on sentence)
D - which was first ..., and which posits (not a full sentence)
E - which was first ..., posits (have one main verb - posits)
Choose E
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The official explanation is here.
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