I am afraid this question has some problems. For a moment let us think what the relative pronoun -
which- or -
that - stands for. Does it refer to –
roll – or -
computer tape?- Or is it phrase -
the sheets after ripping notes? - What did they sell by the thousands — the hundreds of thousands — the millions? Until this modification issue is cleared, none of the choices seems appropriate.
Between the broad spectrum –
which- and the restrictive -
that -, the thumb rule is that, even if you remove the non restrictive -
which clause, the sentence should hold the original meaning.
Please remove the -
which they sold – clause and see if the sentence stills reflects the old meaning. Nay far from it because selling is the essence of the sentence. Try and remove - that they sold - and you still have the same problem of not keeping the old sense.
The best construction would be – “Piano-roll companies bought sheet music and ripped the notes printed on it into 0s and 1s on a long roll of computer tape, selling the rolls by the thousands — the hundreds of thousands — the millions”
Incidentally, can someone explain the literary distinction between “b
y the thousands — the hundreds of thousands — the millions” and “
by the thousands, the hundreds of thousands, and the millions”