Sentence Correction

One of Ronald Reagan's first acts as President was to rescind President Carter's directive that any chemical banned on medical grounds in the United States be prohibited from sale to other countries.

(A) that any chemical banned on medical grounds in the United States be prohibited from sale to other countries
(B) that any chemical be prohibited from sale to other countries that was banned on medical grounds in the United States
(C) prohibiting the sale to other countries of any chemical banned on medical grounds in the United States
(D) prohibiting that any chemical banned on medical grounds in the United States is sold to other countries
(E) that any chemical banned in the United States on medical grounds is prohibited from being sold to other countries


OA C

I chose A which is a wrong option.
I chose A because "that any chemical ... other countries" modifies "directive".
C is correct.
In C,"prohibiting the sale to other ...United states" modifies directive.
I rejected C because prohibiting is the progressive verb tense which would describe an ongoing action .Later i realized it is a present participle modifier modifying "directive".
Then Is it a test of idiom usage "prohibiting + the + noun " or "prohibit + from + noun"
Also I want to know when does someone use the "That" clause to modify a noun and when does someone use an -ing modifier.