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Between B and C how we can decide whats was placed near to Hohokam

With a history dating back to 1200 BCE, the Anasazi, a prehistoric Native American culture centered in the Southwest United States and it neighbored the Hohokam, is noted for distinctive pottery, adobe or sandstone dwellings known as "jacal," and the earlier pit-house.

(B) centered in the Southwest United States and that, neighbored by ---
(C) centered in the Southwest United States that neighbored --- here it appears US neighbored Hohokam
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In B, the inclusion of "that" makes the entire "neighboured...pit-house" fragment a modifier that qualifies "culture". B thus lacks a real verb.
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This appears to be a GMAT Hacks question of the day. The question appeared on April 11, 2013. The Official Explanation from the website is as follows:

Answer: C - Upon first reading of the sentence, the phrase "and it neighbored" should stick out as not idiomatic. Since the clause beginning with "a prehistoric" is background information about the Anasazi, we don't need the pronoun in the middle of it. We can eliminate (D) for the same reason. The first apparent distinction between the remaining choices is "centered" and "that is centered." "Is" is incorrect since the culture is identified as prehistoric, so the present tense is wrong. That leaves us only with (B) and (C). The difference is in the final few words of the underlined portion. The question is largely one of style. In (B), by placing the phrase "neighbored by the Hohokam" within "that is noted for distinctive pottery...," it places background information regarding geographic location in the middle of cultural details. In (C), "cultured centered...that neighbored the Hohokam, is..." places the comparison to the Hohokam's location alongside "the Southwest United States," which makes more logical sense. (C) is correct.

Where does it mention that the culture is dead..It just says that it has a history going back to 1200 BC...
Correct me if I am wrong..I think D & C are both correct in their own way..
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Hello from the GMAT Club VerbalBot!

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