Explanation:

Correct option 3: Only C

Let's analyze the two original sentences and the options provided to determine which connector(s) can form a single coherent sentence without altering the original meaning.

Original Sentences:
There are enough dirges being sung for public sector banks, but strangely the performance of their stocks does not reflect this.

Five out of the seven public sector banks made losses and the profit-makers showed a worse bad loans ratio.

Option A: "On account of the fact that five out of seven public sector banks made losses"
Possible Combined Sentence:
"On account of the fact that five out of seven public sector banks made losses, the performance of their stocks does not reflect this."

Incorrect 

Reason: This implies the stock performance should reflect the losses, but it doesn’t — and that’s the surprising part. So, this does not preserve the intended irony/surprise from the original.

Option B: "The performance of public sector banks does not reflect..."
Possible Combined Sentence:
"The performance of public sector banks does not reflect that five out of seven made losses and the rest had worse bad loans."

Incorrect 
Reason: This isn’t grammatically smooth and also changes the focus. It misses the initial irony about public perception ("dirges being sung") and actual stock performance.

Option C: "Although dirges are being sung for public sector banks..."
Possible Combined Sentence:
"Although dirges are being sung for public sector banks, the performance of their stocks does not reflect this, even though five out of seven made losses and the others had worse bad loans."

This works perfectly. It retains the original meaning, maintains the tone of irony, and logically connects both ideas.