Step 1: Read the sentence part by part.
"The mutual co-operation / of employees is / essential to the success / of business." On first read it looks grammatically complete, there is a subject, a verb, and a completed idea, so the error, if any, must be a subtler word-choice issue rather than a missing verb or wrong tense.
Step 2: Examine part (a) closely.
The word "co-operation" already means working together with others toward a shared goal, the idea of togetherness is built into the word itself. Adding "mutual" in front of it, as in "mutual co-operation", repeats the same idea a second time, since co-operation cannot happen any other way than mutually, one person alone cannot "co-operate". This makes "mutual" redundant, a classic case of tautology, where a word restates a meaning that is already present in the word next to it.
Step 3: Check the remaining parts for correctness.
Part (b), "of employees is", correctly uses the singular verb "is" to agree with the singular subject "co-operation", so there is no subject-verb agreement error here. Part (c), "essential to the success", is a standard, correctly formed phrase. Part (d), "of business", completes the sentence grammatically without any missing article or preposition error in this context.
Step 4: Conclude.
Since parts (b), (c) and (d) are all correct, and the redundancy lies in pairing "mutual" with a word that already implies mutuality, the error is in part (a). The answer is option (a).