Explanation:

Correct Answer is (e).The original fragment contains while. This indicates the fragment following should be contradictory in nature.
I. While, in a sign that the economy remains robust, consumer inflation picked up pace, some analysts expect price pressure as the government’s crackdown on smog hurts factory output.
Statement I conveys the same point that the inflation is expected to go further up. Thus, both the fragments go in the same direction and do not make sense.
II. While, in a sign that the economy remains robust, consumer inflation picked up pace, Beijing is already in the second year of a campaign to reduce high levels of debt, keeping liquidity conditions relatively tight as it seeks to flush out speculative financing.
Statement II is incorrect as inflation and debt levels do not make sense together and there is no continuity.
III. While, in a sign that the economy remains robust, consumer inflation picked up pace, growth, however, has remained strong this year, thanks to a construction boom that has driven up raw materials prices and in part fed inflationary pressures.
The original fragment conveys that growth remains robust. However, the second fragment also states the same but uses however to indicate that the previous fragment conveys the opposite.
This does not make sense and is incorrect.
Hence, option E is correct.