Perennially the world's leader in tea production, China's fascination in tea has deep historical roots, as exemplified with the tea ceremony, which has analogs in Japan and Korea.
Perennially the world's leader
Split #1: idiom with "exemplify". The correct idiom is "as exemplified by": choice (B) has this. Both "exemplified with" and "exemplified in", in choices (A) and (E) respectively, are incorrect. Choice (C) makes the verb active, "exemplifies" instead of passive, and that changes the relation around, what exemplifies what, so this changes the meaning, which is incorrect. Choice (D) changes it to "as an example of", which also changes the meaning ----- when we say "P, as exemplified by Q", we are saying P is the general category and Q is the specific example, but when we say "P, as an example of Q", this phrasing makes P the example and Q the general category. Choice (D) changes the meaning, so it is incorrect.
Split #2: the organization of the information in the first part of the sentence. Let's look at everything up to the "as exemplified" part:
(A) Perennially the world's leader in tea production, China's fascination in tea has deep historical roots, ----The appositive phrase is constructed incorrectly: the "world's leader in tea production" is China, not China's fascination. This is incorrect.
(B) China perennially has been the world's leader in tea production, and its fascination with tea has deep historical roots, ----Both facts stated clearly and correctly, in two separate independent clauses.
(C) Fascinating with deep historical roots, China's tea production perennially leads the world, ---- This changes the meaning ---- the original was communicating that China has a fascination with tea, but this one says China's tea production is "fascinating" to others. This one is incorrect because it changes the meaning.
(D) Perennially the tea producing leader of the world, China has a deep historical fascination with tea, ---- The appositive is correctly constructed, but the phrase "the tea producing leader of the world" is awkward. This one might be acceptable if nothing else were correct. (But, again, "as an example of" is incorrect for the reasons mentioned above.)
(E) China, perennially the world's leader in tea production, and their fascination with tea has deep historical roots, ---- Two grammar mistakes. First, this puts two nouns in parallel with "and" --- "China …. and their fascination" ---- so the verb "has" should be plural, "have"; but putting these two in parallel changes the meaning of the sentence. Also, the plural pronoun "their" is incorrect: the noun "China" is singular. This is definitely incorrect.
For all these reasons, the only possible answer is choice (B).
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