Original Sentence = It is not likely that the competitive imbalance that now exists between Japan with all major industrial nations will be redressed during the foreseeable future.

As Maciek pointed out, there is one error in the original choice - Idiom - between..and. Based on this error, choices A, B, and C are eliminated.

(A) with all major industrial nations will be redressed during

(B) with all other major industrial nations will be redressed within

(C) with all other major industrial nations will be redressed during

Now we are down to choices D and E. At this point, I would like to say that this is not truly a representation of OG style questions. The differences between Choice D and E are as follows:

(D) and all major industrial nations will be redressed during

(E) and all other major industrial nations will be redressed within

Comparison - In D - Japan being compared to all major nations; in E Japan being compared to all other major nations. However, in Choice A, Japan is being compared to all major nations. Now we know that comparisons must be logically and grammatically parallel. Thus, having the knowledge of whether Japan is a developed country or not is required to decide whether the comparison is logical or not. I believe that such an exercise is outside the scope of a typical SC question. I am curious as to what is the source of this question and what is the OA.

Use of During Vs Within - Maciek has correctly noted the usage of during and within using the two examples. In these two examples, during and within are non-interchangeable. However, I feel that there are sentences in which during and within can be used interchangeably. For example:

Tom will complete his report during the course of next 8 hours.
Tom will complete his report within the next 8 hours.

In the examples above, there is a slight difference in the emphasis of sentence. The sentence with during simply states a fact about when Tom will complete his report. The sentence with "within" emphasizes on the time limit. But both are correct.

Similarly, in the context of the sentence in question, both during and within will work. Thus, I am unable to eliminate one vs. the other.

Lastly and most importantly, I have not seen any question in OG12 that tests the usage of during vs. within. Infact, I have found several questions which use the word "during" in the underlined portion of the sentence, but does not include any answer choice with "within" to test the difference in the usage of these words.

Long story short, please do not sweat over this question as long as you got the between..and idiom correct.