Your confusion is a common one, because (except in irregular cases) past participles and simple past tense verbs look exactly alike! The only way you can tell which function a particular -ED word is by context. Here are some examples:
Fashioned from granite, the building was very sturdy.
--> If the -ED is the 1st word in the sentence, it must be a participle, modifying the subject after the comma. We can't start sentences with verbs.
The building, fashioned from granite, was very sturdy.
--> If the -ED phrase is separated by commas, it's a participle describing what comes before it. Meaning also applies: buildings cannot fashion themselves, so it must be an action that was done to the building.
The stonecutter
fashioned many large buildings out of granite.
--> If the -ED comes directly after a noun (especially if it takes an object), then it might be a verb. Use meaning to decide: is that the action that the noun is performing? Here, it's clear that "fashioned" is the action that the stonecutter performed, so it's a verb.
So, we have to use MEANING + STRUCTURE to deduce the function of -ED words.
Here is the full text of the question:
Many of the earliest known images of Hindu deities in India date from the time of the Kushan Empire, fashioned either from the spotted sandstone of Mathura or Gandharan grey schist.
(A) Empire, fashioned either from the spotted sandstone of Mathura or
(B) Empire, fashioned from either the spotted sandstone of Mathura or from
(C) Empire, either fashioned from the spotted sandstone of Mathura or
(D) Empire and either fashioned from the spotted sandstone of Mathura or from
(E) Empire and were fashioned either from the spotted sandstone of Mathura or from
(A) Empire, fashioned either from the spotted sandstone of Mathura or
FASHIONED comes after a comma, so it must be a modifying participle.
It incorrectly modifies "Empire," though, so it's incorrect. "either
from... or
Gandaharan schist" is also not parallel.
(B) Empire, fashioned from either the spotted sandstone of Mathura or from
FASHIONED comes after a comma, so it must be a modifying participle.
It incorrectly modifies "Empire," though, so it's incorrect. "either
sandstone... or
from" is also not parallel.
(C) Empire, either fashioned from the spotted sandstone of Mathura or
FASHIONED comes after a comma, so it must be a modifying participle.
Again, it incorrectly modifies "Empire," so it's incorrect. "either
fashioned... or
Gandaharan schist" is also not parallel.
(D) Empire and either fashioned from the spotted sandstone of Mathura or from
Because FASHIONED comes after AND, it connects back to the verb DATE. This implies that the images were doing the fashioning; this idea is nonsensical.
"either
fashioned... or
Gandaharan schist" is also not parallel.
(E) Empire and were fashioned either from the spotted sandstone of Mathura or from
Here, FASHIONED comes after WERE, making it part of the compound verb WERE FASHIONED. The passive voice makes perfect sense here - images can't fashion themselves, but they can be fashioned.
This is the only answer choice that is parallel: "either
from... or
from."
The correct answer is
E.