Great question, j_shreyans! My response is below:
For all their usefulness in facilitating comparisons between cities of different sizes, per-capita statistics, especially crime rates, often shine an unfairly harsh light on small towns, in which a single incident can cause such figures to skyrocket.
The sentence makes sense: For all their usefulness... is an idiom that conveys the same meaning as "despite their usefulness..." or "even though they are useful...." So, the sentence is saying that though per-person statistics are useful in comparing different-sized cities, they can also make small towns look worse than they actually are.
A) For all their usefulness in facilitating comparisons between cities of different sizes, per-capita statistics, especially crime rates, often
The original sentence is correct.
B) Despite they are useful in facilitating comparisons between differently sized cities, per-capita statistics, and especially crime rates, often
Incorrect: The sentence is not grammatical. Despite is followed by a noun or noun equivalent, not by an independent clause (they are useful). "Despite their usefulness..." would work.
C) Because they are quite useful in facilitating comparisons between different sized cities, per-capita statistics, especially crime rates, can often
Incorrect: This changes the meaning of the sentence from contrast ("Even though [A]..., ...") to cause and effect. The unfair portrayal of small towns is in contrast to, not because of, the overall usefulness of the statistics.
D) Quite useful when facilitating comparisons between differently sized cities, per-capita statistics, and especially crime rates, which frequently
Incorrect: This is not a complete sentence as the subject (per-capita statistics) has no corresponding verb. The sentence also loses the necessary contrast.
E) For their usefulness in facilitating comparisons between different sized cities, per-capita statistics, especially crime rates, frequently
Incorrect: For all... conveys the sense of "despite," but a simple For... means "due to" or "for the purpose of," which again is not the correct meaning of the sentence.
Let me know if you have any other questions!
Ready4