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My answer is (B).

(A) Not too bad, but "members that are aging" is rather wordy. Also, "who" should be used if all members are human beings.

(B) Correcting "members that are aging" and also simplifying "decline in dues", this sentence is better than (A).

(C) "aging members facing them" is so convoluted that I almost eliminated it when I previewed the options before reading the sentence.

(D) Not much better than (C). "dues and members“ facing themselves?

(E) "facing" is fatal. If "facing" were to be removed, this sentence would make sense. (Still, "decline in dues" may be made more laconic).
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B in my opinion.

A) Faced with decline in dues and members that are aging,----> Wordy and 'members that are aging' seemed to be a little awkward. Alos, Parallelism issue.

B) Faced with declining dues and aging members,----> Correct. Parallel

C) With declining dues and aging members facing them,-----> 'Aging members facing them' them is incorrect.

D) Declining dues and aging members facing them,----> Same issue as C

E) As a result of decline in dues and facing aging members,----> Not parallel
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Faced with decline in dues and members that are aging, the city’s centuries-old private social clubs are trying to modernize traditions and renovate outdated interiors in order to attract millennials.

A) Faced with decline in dues and members that are aging, -> we have clubs in non-underlined part and "faced with..."is correct modifier. Nevertheless, "that are aging" is wordy to say "aging". Let's see, if we get a better option.

B) Faced with declining dues and aging members, -> It is better than A. Let's keep it.

C) With declining dues and aging members facing them, -> "facing them" is incorrect.

D) Declining dues and aging members facing them, -> Same as C. Incorrect.

E) As a result of decline in dues and facing aging members, -> facing is not parallel to decline. Incorrect.

So, I think B. :)
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Faced with decline in dues and members that are aging, the city’s centuries-old private social clubs are trying to modernize traditions and renovate outdated interiors in order to attract millennials.

IMO B

A) Faced with decline in dues and members that are aging,

B) Faced with declining dues and aging members,

C) With declining dues and aging members facing them,

D) Declining dues and aging members facing them,

E) As a result of decline in dues and facing aging members

Reasoning: -
1. In A and E, we have parallelism error - decline in dues vs members that are aging.
2. In C and D, while them should refer to social clubs- it can refer back to members as well.
B has nothing wrong with it.
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