A recent U.S census bureau report shows that there are more than three times as many households where the children and grandchildren are living in their grandparents' home as compared to householdswhere the grandparents are living in their children's or grandchildren's home.
Firstly, if you choose C, you compare “households (which means all the people who live together in one house)" with "grandchildren"
This sentence is intended to compare “households where the children and grandchildren are living in their grandparents' home” with “households where the grandparents are living in their children’s or grandchildren's home”