Federal legislation

[real2008]

p9. Federal legislation establishing a fund for the cleanup of sites damaged by toxic chemicals permits compensating state governments for damage to their natural resources but does not allow claims for injury to people.
(A) compensating state governments for damage to
(B) compensating state governments for the damaging of
(C) giving state governments compensation for damaging
(D) giving compensation to state governments for the damage of
(E) the giving of compensation to state governments for damaging

can anybody explain right choice?

[Robinmrtha]

x permits y to............
and x and y should be parallel and this leaves us with A
So there is nothing wrong with the given statement

[graghukalyan]

(A) compensating state governments for damage to
(B) compensating state governments for the damaging of
(C) giving state governments compensation for damaging
(D) giving compensation to state governments for the damage of
(E) the giving of compensation to state governments for damaging

Two actions here:1) compensating state governments for damage to their natural resources 2) allowing claims for injury to people.
No usage of the in the 2nd one.Hence E is eliminated.

In C & D, "giving compensation ..." makes it passive rather than in the preferable active form.

Out of A and B. As mentioned x permits y to if we look "A".

I guess I shud have used the last principle before to save sm time