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Bunuel
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IMHO the answer should be C. The sentence is trying to say that Russia chose wider “Russian gauge” (1520 mm) and this selection does 2 thing - First gives greater and second acts as National Defence

gives and acts are parallel

The second part of statement expand on how it acts as National Defence and we have modifier expanding on it. But note we already have second half of that modifier written in non underlined portion --> and preventing these bordering powers from invading by train.

blocking will be a good option to go since it will be parallel to preventing

Hope that helps
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All drill downs to A, and C
Option A:
Whereas both Europe and China use standard railroad gauge (1435 mm),
Russia deliberately chose the wider “Russian gauge” (1520 mm)
that gives greater side-to-side stability in railways cars and, more importantly,
acts as a national defense, so that
it would block
foreign army’s supply line and
preventing these bordering powers from invading by train.
Error:
1. Parallelism error, so that it would block not parallel to preventing
2. wordy

Option C
Whereas both Europe and China use standard railroad gauge (1435 mm),
Russia deliberately chose the wider “Russian gauge” (1520 mm)
that gives greater side-to-side stability in railways cars and, more importantly,
acts as a national defense,
blocking
foreign army’s supply line and
preventing these bordering powers from invading by train
Correct: No Parallelism error & clear with intened meaning
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