A

we are concerned with the best options from the choices.
Rest all are violating the parallelism...

I'd rather go for the E answer.

"one fueled" sounds also strange to me, but I think that "increasing tuition costs at private colleges" is better than "tuition costs increasing at private colleges"

:

(A) one fueled by a resurgence of patriotism, increasing tuition costs at private colleges, and improved recruiting by the academies - IMO -- the answer

by is common for all 3 actions.

(B) one fueled by a resurgence of patriotism, tuition costs that have increased at private colleges, and academies improving their recruiting - not parallel

(C) one fueled by a resurgence of patriotism, private colleges that increased their tuition costs, and recruiting improvements by the academies - not parallel

(D) fueled by a resurgence of patriotism, tuition costs increasing at private colleges, and academies improving their recruiting - not parallel

(E) fueled by a resurgence of patriotism, increasing tuition costs at private colleges, and academies improving their recruiting - not prallel

oopps correction !

take back my first answer.

Will go with E.

IMO A.

resurgence of patriotism ... increasing tuition costs ... improved recruiting ...

I will go with "A". What is OA

A maintains the parallelism throughout the sentence.
"one" (appositive of rise)
"fueled" (participle modifying noun one)
"increasing" is an adjective modifying the noun phrase "tuition costs".
"recruiting" is a gerund here. The gerund always has the same function as a noun (although it looks like a verb) Hence, A is the answer.
Rest four choices fail to maintain parallelism due to different tenses used.
B: one fueled by a resurgence of patriotism (simple present), tuition costs that have increased at private colleges (past perfect), and academies improving their recruiting (present continuous)
C: one fueled by a resurgence of patriotism (simple present), private colleges that increased their tuition costs (simple past), and recruiting improvements by the academies (simple present)
D: fueled by a resurgence of patriotism (simple present), tuition costs increasing at private colleges (simple present), and academies improving their recruiting (present continuous)
E: fueled by a resurgence of patriotism (present), increasing tuition costs at private colleges (present), and academies improving their recruiting (present continuous)