求助一道sc题

喵了个咪hh

During the past decade, the labor market in France has not been operating according to free market principles, but instead stifling functioning through its various government regulations restricting the hiring and firing of workers.

A.principles, but instead stifling functioning through its various government regulations restricting the hiring and firing of workers
B.principles, instead it has been functioning in a stifled manner as a result of various government regulations that restrict the hiring and firing of workers
C.principles, rather functioning despite being stifled as a result of government regulations that variously restrict worker hiring and firing
D.principles; the hiring and firing of workers is restricted there by various government regulations, its functioning being stifled
E.principles; instead, its functioning has been stifled by various government regulations restricting the hiring and firing of workers

OA：e
这道题我选的是b,为什么e选项中的its指代正确呢？应该怎么理解这道题呢？