Sentence Correction (SC) | Re: Federal legislation establishing a fund for the cleanup of

Federal legislation establishing a fund for the cleanup of sites damaged by toxic
chemicals permitscompensating state governments for damage to their natural resources
but does not allow claims for injury to people.
(A) compensating state governments for damage tothere is nothing actually wrong with this- this is idiomatically correct
(B) compensating state governments for the damaging of
(C) giving state governments compensation for damagingthis issue with this answer choice is that it significantly alters the meaning of the sentence- this sentence implies that Federal legislation is compensating state governments for damage that those state governments bring upon themselves - this is all implied by "damaging"