The correct option is
B needs
The subject, "School education", is in third person singular noun form. Such a noun is followed by verb+"s" in present tense. In the given sentence, the main verb is "need". Hence, option A (without the letter "s") is incorrect and option B (need +"s") is correct.
Option C: The words, "is needed" should be followed by either "to" or "for" followed by a noun/ noun phrase. For Example: "School education is needed for achieving hundred percent literacy in the country".
However, in the given sentence, neither "to" nor "for" is used. The sentence, "School education is needed a drastic change" is grammatically incorrect. Hence, this option is incorrect.
Option D: The verb, 'need' is a stative verb, which does not represent an action. It describes a mental state. Such verbs are not used in their present continuous form. Therefore, the word, "needing" (present continuous tense of the verb, "need") is grammatically incorrect.