Step 1:
Mahabharata begins with Adi Parva followed by Sabha Parva.
Step 2:
After Sabha Parva comes Vana Parva and then Virata Parva.
Step 3:
Udyoga Parva follows Virata Parva before the war begins.
Step 4:
Thus, the correct arrangement is:
\[
A \rightarrow C \rightarrow B \rightarrow D \rightarrow E
\]
Hence, the correct option is:
\[
\boxed{\text{(1)}}
\]