Sentence Correction

According to some analysts, the gains in the stock
market reflect growing confidence that the economy
will avoid the recession that many had feared earlier in
the year and instead come in for a "soft landing,"
followed by a gradual increase in business activity.

(A) that the economy will avoid the recession
that many had feared earlier in the year and
instead come

(B) in the economy to avoid the recession, what
many feared earlier in the year, rather to come

(C) in the economy's ability to avoid the recession,
something earlier in the year many had feared,
and instead to come

(D) in the economy to avoid the recession many
were fearing earlier in the year, and rather
to come

(E) that the economy will avoid the recession that
was feared earlier this year by many, with it
instead coming

Please answer the above question and tell me if the following would have also been correct in the place of correct answer ?

in the economy will avoid the recession
that many had feared earlier in the year and
rather come

My question is:

What is the difference between rather and instead ?