Intar, the oldest Hispanic theater company in New York, has moved away from the Spanish classics and now it draws on the works both of contemporary Hispanic authors who live abroad and of those in the United States.
(A) now it draws on the works both of contemporary Hispanic authors who live abroad and of those
(B) now draws on the works of contemporary Hispanic authors, both those who live abroad and those who live
(C) it draws on the works of contemporary Hispanic authors now, both those living abroad and who live
(D) draws now on the works both of contemporary Hispanic authors living abroad and who are
(E) draws on the works now of both contemporary Hispanic authors living abroad and those

OA is B. OG says that 'it' after 'and' creates a ungrammatical sentence like in A. Is it some grammar rule that we dont put pronoun after 'and'? Or 'it' in our case has multiple referent.

Thanks

Aishwary

As far as the 'it' goes:
* At best, it's redundant (there's no shift in the subject, so there's no need for an additional useless pronoun). And we all know how the GMAT feels about redundancy.
* At worst, it creates bad parallelism between the two segments of the 'and'-compound: has moved away from the Spanish classics and now it draws on the works... Since the first part of this parallel pair lacks a pronoun, the second shouldn't have one either.

My least favorite part of choice A is 'the works both of...', which is awkward if not downright wrong.