The OA is E.
There are two problems in the original sentence. First, comparisons must compare logically parallel things, but this sentence compares "children whose parents speak English as a second language" with "those (children, presumably) who are native English speakers” themselves. Logic tells us that a child can both in both of these categories: a child who is a native English speaker can have parents who speak English as a second language. Thus, these are not parallel categories. Secondly, the antecedent of the pronoun "those" is ambiguous; "those" could refer to "children" or "parents."
(A) This choice is incorrect as it repeats the original sentence.
(B) Although this choice resolves the pronoun issue by replacing "those" with "children," it continues to compare "children whose parents speak English as a second language" with "children who are native English speakers."
(C) This choice incorrectly compares “children whose parents speak English as a second language” with all “native English speakers.”
(D) Although this choice makes a clear comparison between two similar or parallel things (children of two different groups of parents), the comparison does not resolve the pronoun issue because it retains the ambiguous "those."
(E) CORRECT. This choice correctly compares “children whose parents speak English as a second language” with the logically parallel “children whose parents are native English speakers." Moreover, it resolves the pronoun issue by replacing "those" with "children."
Note that "compared to" and "compared with" are equivalent idioms from the point of view of the GMAT; thus this split is a red herring. According to some usage experts, these two idioms differ slightly in their emphasis on similarities vs. differences, but this distinction is not universally respected.