Step 1: Understanding the Question:
The question requires us to arrange major historical milestones in the development of academic and professional psychology in India in chronological order.
Step 2: Detailed Explanation:
• Let us trace the historical dates of each listed milestone event in Indian psychology:
• E. Psychology teaching started at masters level in Calcutta University: This began in the year $1916$, when the first independent department of psychology was established under the leadership of Dr. N.N. Sengupta.
• A. The first doctorate in psychology awarded at Calcutta University: This milestone occurred in $1921$, when Dr. Girindrasekhar Bose was awarded the first PhD in psychology for his work on the concept of repression.
• C. Formation of Indian Psychological Association: The Indian Psychological Association (IPA) was officially founded in the year $1924$.
• D. Publication of Indian Journal of Psychology: The Indian Journal of Psychology, the first official psychology journal in the country, began its publication in the year $1926$.
• B. A separate Applied Psychology section was added in Calcutta University: This department was established in the year $1938$ to focus on vocational guidance, industrial psychology, and clinical testing.
• Organizing these dates chronologically: $1916$ (E) $\rightarrow$ $1921$ (A) $\rightarrow$ $1924$ (C) $\rightarrow$ $1926$ (D) $\rightarrow$ $1938$ (B).
• This gives the sequence: E - A - C - D - B.
Step 3: Final Answer:
The correct chronological order of the milestone events is E - A - C - D - B.