OPTION A:- CORRECT
"Other nations.....holding" ----[noun]+[participle] : this has the form of an absolute clause, which is perfectly correct.

OPTION B:- INCORRECT
"And other nations....holding" the "and" implies another independent clause is coming, parallel to the clause is coming, parallel to the first, but instead we get noun+participle, which doesn't fit the patter. This is incorrect

OPTION C:- INCORRECT
which other nations.......holding this structure is common in colloquial speech, "with" +noun + participle. The prepositions "with" is designed to hold a noun, maybe even a modified noun, but not an entire action.

OPTION D:- INCORRECT
"Other nations...hold"
The noun + verb, another full independent clause. By itself, everything after the first comma in these choices could stand as a complete sentence. The problem is we have [independent clause], [independent clause] that's the structure of a run-on sentence. We always need some kind of conjunction (and, or, but, therefore etc) joining two independent clause:they can't just sit next to each other separated by a comma that's the classic run-on pattern. Both of these choices are incorrect.

OPTION E:- INCORRECT
Suffers the same fate as option D above. Uses such as correctly but second independent clause clause is 'Run-on'