Concept:
To arrange literary works chronologically, we must know their broad historical order.
The Vedic texts are among the earliest Indian literary works.
Later came political, philosophical, and story literature.
Step 1: Identify the earliest text.
Rigveda is the earliest among the given works.
So, the first text is:
\[
B = \text{Rigveda}
\]
Step 2: Place Brahmanas after Rigveda.
The Brahmanas are prose texts connected with Vedic rituals.
They came after the Vedic hymns.
So, the second text is:
\[
A = \text{Brahmanas}
\]
Step 3: Place Upanishads after Brahmanas.
The Upanishads represent philosophical thought and came after the ritual-focused Brahmana literature.
So, the third text is:
\[
E = \text{Upanishads}
\]
Step 4: Place Kautilya-Arthashastra.
Kautilya-Arthashastra belongs to the Mauryan period and deals with polity, administration, economy, and statecraft.
So, the fourth text is:
\[
D = \text{Kautilya-Arthashastra}
\]
Step 5: Place Panchatantra.
Panchatantra is a later collection of animal fables and moral stories.
So, it comes after the earlier Vedic and Mauryan texts.
Thus, the last text is:
\[
C = \text{Panchatantra}
\]
Step 6: Final arrangement.
The correct chronological order is:
\[
B \rightarrow A \rightarrow E \rightarrow D \rightarrow C
\]
Hence, the correct answer is:
\[
\boxed{\text{(A) B, A, E, D, C}}
\]