The correct option is C In what promises to be an alternative to corneal transplantation for treating blindness caused from damage to cornea, the discovery of potent stem cells possessing the ability to restore lost sight in the eye by city-based L.V. Prasad Eye Institute (LVPEI)’s scientists along with U.S. scientists offers hope.
A. "That" incorrectly modifies "eye", which does not possess the ability to restore lost sight. The potent stem cells in the eye possess the ability to restore lost sight. Incorrect
B. If we read this answer choice carefully, we see that "the discovery of..... by scientists..... possess the ability to restore lost sight". Again, the discovery does not possess the ability. Incorrect
C. Here, "Possessing the ability to restore lost sight" correctly modifies potent stem cells. Correct
D. Like choice A, "which" incorrectly modifies "eye", which does not possess the ability to restore lost sight. Incorrect
E. Same as choice A. Incorrect