This is primarily a modifier question. The original structure of the sentence is as follows:
Finally reaching a decision..., politicians decided to do X, instead of which they proposed Y, by which they intend to do Z.
The last modifier, "instead of ..." is incorrect.
A better structure would be, "Finally reaching a decision..., politicians decided to do X, proposing instead Y intended to do Z.
Choice (B) fixes it with the correct structure.
Choice (C) is incorrect because it
...
Finally reaching a decision..., politicians decided to do X, instead of which they proposed Y, by which they intend to do Z.
The last modifier, "instead of ..." is incorrect.
A better structure would be, "Finally reaching a decision..., politicians decided to do X, proposing instead Y intended to do Z.
Choice (B) fixes it with the correct structure.
Choice (C) is incorrect because it
...
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