Concept:
In the line etching with grain method, the plate is first prepared with an etching ground, the design is drawn, resin is applied and fused to create grain, and finally staged etching is carried out to obtain soft tonal lines.
Step 1: Prepare the plate.
The metal plate is first coated with an acid-resistant ground.
\[
\boxed{\text{Plate is covered with a ground}}
\]
Step 2: Draw the design.
The image is scratched through the ground using an etching needle.
\[
\boxed{\text{Design executed by scraping with needles}}
\]
Step 3: Apply the grain.
The plate is dusted with finely powdered resin.
\[
\boxed{\text{Plate is dusted with resin powder}}
\]
Step 4: Fuse the resin.
The plate is heated, just as in the aquatint process, to fix the resin particles.
\[
\boxed{\text{Plate heated as in aquatint}}
\]
Step 5: Etch the plate.
Successive etching and stopping-out produce soft grained tonal lines.
\[
\boxed{\text{Soft grained lines by staged etching and stopping up}}
\]
Thus, the correct sequence is
\[
\boxed{C,\ D,\ A,\ B,\ E}
\]
Hence,
\[
\boxed{\text{(B)}}
\]