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Bunuel
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IMO B is the answer

Step 1. Remove the fluff

The delinquency rates....have increased sharply leading to predictions that foreclosures on these types of loan could double over the next three years.

Step 2
Since delinquency rates is plural we use *Have* and not *Has*

Eliminate all answers with *has* i.e. D & E.
We are now left with option A B and C.

Step 3
In option C the phrase “doubling of foreclosures” is wrong. So we can eliminate option C as well.

Step 4
We can now compare option A & B
The only difference is the first line

The phrase “in recent months” modified the phrase have increased sharply so it should come after it. Hence B is the better option.

I really hopes this helps everyone.

Posted from my mobile device
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Can Some one Explain Why C is wrong ..?
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ManojM Sure. "Doubling could occur" is too vague. How many times will the rate double? C would work better if it said "a doubling," implying that the rate could double one time. In general, it's odd to say "[Abstract noun] could occur" if we mean that one specific event will happen. Look at these pairs and I think you'll see what I mean:

The security team feared that the Minister might be assassinated.
The security team feared that assassination of the Minister might occur.

If you leave your car unlocked, it is likely to be stolen.
If you leave your car unlocked, theft is likely
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