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My answer is (E). It took me 44 seconds.

(A) In X rather than Y, I prefer that X and Y are parallel.
(Can "rather than" be followed by a gerund such as facing? Actually, it can. "rather than" can be used as a preposition = "instead of". Read more at https://www.merriam-webster.com/diction ... as%20angry.)

(B) "opted" is intransitive verb, so "opted settling" is wrong. Read more at https://www.merriam-webster.com/diction ... 1%20of%202)-,intransitive%20verb,-%3A%20to%20make%20a

(CD) Past perfect tense cannot be justified without a past event in the same sentence.

(E) This is what I would like to see, so I chose it.
In comparison with (A), the only difference is "rather than facing" in (A) vs. "rather than face" in (E).
Is (A) necessarily wrong? I do not think so. I just prefer parallelism whenever possible.
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Increasingly over the last few years, corporations involved in patent litigation have opted to settle the lawsuit rather than facing the protracted legal expenses of a court battle.

1) Looking at the Introductory prepositional phrase we can say present perfect tense is needed, Past perfect is wrong Eliminate C and D
2) A is not parallel- Infinitive on one side and ing form of verb are not parallel.
3) (B) have opted settling the lawsuit instead of facing ...with verb opt infinitive is needed
4) (E) have opted to settle the lawsuit rather than face. Verbs are parallel

(E) is correct
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Increasingly over the last few years, corporations involved in patent litigation have opted to settle the lawsuit rather than facing the protracted legal expenses of a court battle.


A) have opted to settle the lawsuit rather than facing Incorrect

settle and facing are not in parallel

B) have opted settling the lawsuit instead of facing Incorrect

settling should be - to settle

C) had opted to settle the lawsuit rather than face Incorrect

past form wrong

D) had opted for settlement of the lawsuit instead of facing Incorrect

same as C

E) have opted to settle the lawsuit rather than face Correct
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