Explanation:

There is an error in the Part D of the given sentence. The main reason is that the usage of the parts of speech is not correct in this part of the sentence. We are stating that the situation in Kashmir is not showing any sign of normalcy though a lot of time has passed after the important event being referred. Therefore we should use the noun form to imply that the signs of normal life are visible around the valley whereas normal is adjective in this case and is not going with the context at all. It should have been normalcy. There is no other error in any part of the sentence.

The correct sentence would be:

The functioning of government offices, business centres and markets remained dismal even if a few indicators showed signs of normalcy.

This makes Option D the correct choice among the given options.