(A) Water and resource management problems [ water will be at the head of the legislature and resource management problems will be at the head of the legislature's list. How can water be at the head of something. Eliminated!]

(B) Problems of managing water and resources [ problems will be at the head of legislature?? Eliminated!]

(C) Problems in the management of water and other resources[ correct. the elements are parallel. my answer]

(D) Problems of water and other resource management [this option reads as problems will be at the head of legislature's list. the meaning is completely distorted. Eliminated!]

(E) Resource management problems, including water [including water is wrong. water is not at the head of the legislature's list. Eliminated!]

Hope this helps!

IMO C