Sentence Correction

Municipal governments are beginning to confront the growing pension liabilities; this leads local politicians throughout the country to become increasingly vocal about restraining costs and limiting services.
a. the growing pension liabilities; this leads
b. their growing pension liabilities; leading
c. the growth in their pension liabilities, which leads
d. their growing pension liabilities, leading
e. their growing pension liabilities, that leads

My ques. is in option C, "which" modifies "liabilities" or "growth in their pension liabilities"?

which refers to pension liabilities. the verb "leads" doesnt agree with the plural "liabilities"

Is it D?

Initially i was confused between B & D then used following process to clear it
As per my understanding in case of ";" we can use it if the portion after it make sense on its own while "," should when we want to provide some extra info about subject (non restrictive clause). going by above rule D makes sense. Plz correct my understanding

vaibhav.iit2002 wrote:Municipal governments are beginning to confront the growing pension liabilities; this leads local politicians throughout the country to become increasingly vocal about restraining costs and limiting services.
a. the growing pension liabilities; this leads
b. their growing pension liabilities; leading
c. the growth in their pension liabilities, which leads
d. their growing pension liabilities, leading
e. their growing pension liabilities, that leads

My ques. is in option C, "which" modifies "liabilities" or "growth in their pension liabilities"?

Option (c), Which modifies the noun preceding it and never a clause. so here it is modifying "liabilities"

OA is D