There's a little bit of Framework #3 here: [main sentence, descriptive phrase]
The phrase "where hopes for a good team that would actually make it to the palyoffs had been dwindling" - is further description about the "city" - so we need to separate it with a comma. So that already narrows your options to (A), (D), and (E).
Also, you might be tempted to use "whose" - but for the purposes of the GMAT - you want to use "where" when referring to a place and use "whose" when referring to a human being.
source: GMAT Pill
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