Step 1: Identify what the question is testing.
This question checks pronoun-antecedent agreement, that is, whether a pronoun matches the number of the noun it refers back to.
Step 2: Find the antecedent.
The subject of the sentence is "The Chairmen of all large private sector banks", which is clearly plural ("Chairmen", not "Chairman"). Later in the sentence, the pronoun "its" is used to refer back to this plural subject when talking about the suggestions being given.
Step 3: Check agreement.
"Its" is a singular possessive pronoun. Since the antecedent (the Chairmen) is plural, the pronoun must also be plural. The correct pronoun here is "their", giving "...officials to give their suggestions...".
Step 4: Locate the error within the underlined segments.
The word "its" appears at the end of segment (c), "senior World bank officials to give its", so the error is contained in this segment.
Step 5: Confirm the other segments.
Segments (a), (b) and (d) are grammatically fine on their own. Only segment (c) carries the faulty pronoun, so option (c) is correct.