I shall go with C:

A New York City ordinance of 1897 regulated the use of bicycles, mandated a maximum speed of eight miles an hour, required of cyclists to keep feet on pedals and hands on handlebars at all times, and it granted pedestrians right-of-way.

A. regulated the use of bicycles, mandated a maximum speed of eight miles an hour, required of cyclists to keep feet on pedals and hands on handlebars at all times, and it granted
B. regulated the use of bicycles, mandated a maximum speed of eight miles an hour, required cyclists to keep feet on pedals and hands on handlebars at all times, granting : Parallelism issue
C. regulating the use of bicycles mandated a maximum speed of eight miles an hour, required cyclists that they keep feet on pedals and hands on handlebars at all times, and it granted : Correct
D. regulating the use of bicycles, mandating a maximum speed of eight miles an hour, requiring of cyclists that they keep feet on pedals and hands on handlebars at all times, and it granted : Also parellalism issueRequiring of
E. regulating the use of bicycles mandated a maximum speed of eight miles an hour, required cyclists to keep feet on pedals and hands on handlebars at all times, it and granted

to me the answer will be "E"

A New York City ordinance of 1897 regulated the use of bicycles,here we can use which regulate the use of bicycle, we can omit which and add"-ing" at the end of regulate==> regulating the use of bicycle from here the examples of regularions are introduced so they are all in parallel structure mandated a maximum speed of eight miles an hour, required of cyclists to keep feet on pedals and hands on handlebars at all times, and it grantedand granted to follow the parallelism pedestrians right-of-way.

OA is E

Wow! The explanation from Meharsa is really good.