Sentence Correction

165. Because of the business community's uncertainty about the President's position in regard to the issue of the budget deficit, an unanticipated rise in interest rates has occurred.
(A) in regard to the issue of the budget deficit, an unanticipated rise in interest rates has
(B) on the deficit, an unanticipated rise in interest rates has
(C) regarding the budgetary deficit, an unanticipated rise in interest rates have
(D) on the deficit, an unanticipated rise in interest rates have
(E) regarding the deficit, an unanticipated rise in interest rats have

can some one explain why b) could be accepted as an answer despite excluding "budget", completely altering the intent of the sentence.

ashish1354 wrote:165. Because of the business community's uncertainty about the President's position in regard to the issue of the budget deficit, an unanticipated rise in interest rates has occurred.
(A) in regard to the issue of the budget deficit, an unanticipated rise in interest rates has --- "In regard to" is wrong idiom. It should have been "with regard to"
(B) on the deficit, an unanticipated rise in interest rates has
(C) regarding the budgetary deficit, an unanticipated rise in interest rates have --- Sub/Verb issue
(D) on the deficit, an unanticipated rise in interest rates have ---Sub/Verb issue

(E) regarding the deficit, an unanticipated rise in interest rats have ---Position regarding the deficit is not correct idiom.


can some one explain why b) could be accepted as an answer despite excluding "budget", completely altering the intent of the sentence.

I got it right. See, all the sentences have grammatical errors except B. That is why B is the best option, even if it removes some of the words used in original sentence.

Mistook the subject of the sentence as "interest rates" instead of "rise"..can somebody please explain this part further?