Sentence should be in past perfect.
Had + Verbed (Event 1) followed by Simple past (Event 2).
Option D has this combination. Though (E) may look closer, but it is wrong in writing"the Earth’s dry land first "appeared (in simple past tense).
(D) had appeared when the Creator had separated the “water above” from the “water below”, and that there was
(E) appeared when the Creator had separated the “water above” from the “water below”, and that there was
...
Had + Verbed (Event 1) followed by Simple past (Event 2).
Option D has this combination. Though (E) may look closer, but it is wrong in writing"the Earth’s dry land first "appeared (in simple past tense).
(D) had appeared when the Creator had separated the “water above” from the “water below”, and that there was
(E) appeared when the Creator had separated the “water above” from the “water below”, and that there was
...



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