Here's the
official explanation provided by the GMAC for this question:
This sentence makes a prediction about a relationship between Japan and a group of other countries, by using the phrase
between ...
with to refer to the relationship.
With is the wrong word; the standard form is
between ...
and. Furthermore, it says that the relationship is between Japan and all major industrialized nations. This is illogical because Japan is also a major industrialized nation. The proper category is all
other major industrialized nations.
Option A: Between ...
with is unidiomatic and makes no sense. Also, this refers to a relationship between Japan and
all major industrial nations, thus presupposing that Japan is not among the major industrial nations.
Option B: Between ...
with is unidiomatic and makes no sense.
Option C: Between ...
with is unidiomatic and makes no sense.
Option D: This refers to a relationship between Japan and
all major industrial nations, thus presupposing that Japan is not among the major industrial nations.
Option E: Correct. This makes a clear, coherent statement using correct wording and idiomatic structures.
The correct answer is E.
Please note that I'm not the author of this explanation. I'm just posting it here since I believe it can help the community.