B is correct.
Do you say
“demand that the money is controlled”
Or
“demand that the money be controlled”

You say “I want the house to be built by architects”—instead of “I want the house is built by architects.”

So you choose “demand that the money be controlled”—which is answer B.

But let’s pretend you didn’t know that so you keep reading the sentence.

You asked about “them” in “but it allows them”—it allows who? It allows “the administration.”

You also asked about “it” in “but it allows them”—but who/what allows them to spend?
Well, it’s the budget. You might think it seems too far apart because there’s a lot of FLUFF in the sentence.

Try reducing the sentence to:
“The budget for education reflects XYZ, but it [the budget] can only be spent on ABCDEF.”

Harvard: Tuesday, December 14th
Chicago: Wednesday, December 15th
Stanford: Wednesday, December 15th
LBS: Wednesday, December 15th

Yale: Thursday, December 16th
Tuck: Friday, December 17th
Wharton: Friday, December 17th
INSEAD: Friday, December 17th
Cornell: Tuesday, December 21st

Good luck to all!

Kaplan Test Prep did a survey of business schools and they found that the number of business schools accepting GRE scores instead of GMAT scores grew this year. Well, that’s expected.

Interestingly, roughly a third of those schools surveyed reported that MBA candidates who submitted a GMAT score would have a slight advantage over those who submitted a GRE score.

So although the GRE is being accepted by more and more schools, if you have a choice, we recommend opting for the GMAT exam to stay competitive with your application profile pool.

OG Data Sufficiency #120
GMAT Prep Question #3 (Video)

GMATPill Response To This GMAT Verbal Question:

I surprisingly arrived at answer (B) fairly quickly without looking at (C), (D), or (E).

“The fact of some fraternal twins resembling” is definitely wrong.
You cannot say “the fact of”—it has to be “the fact that XYZ resemble each other”

I looked at the first few words of all the answer choices and none of them had “the fact that.” But I was sure (A) was wrong. Therefore, I looked at (B).

Most people would think that since the sentence begins with “That the”—then it’s automatically wrong. But since I’ve seen lots of questions I know it’s not common in spoken language, but on the GMAT this format is correct.
I read it as:
“That [this fact] highlights an interesting and often overlooked…”

It’s common for people to say “That highlights an interesting point.”
What is “that” referring to?
In this case, “that” is referring to: “That some fraternal twins resemble each other greatly while others look quite dissimilar.”

So (B) looks like the right answer.

So continue reading the sentence and you’ll see there’s nothing wrong with it. So I’m pretty confident (B) is the answer without even reading through (C), (D), and (E).

But now looking at (C) and (D) I see “With…”
For phrases that begin with “with”–you need to ask yourself WHO or WHAT is WITH something?
The answer is: the subject of what’s after the COMMA.
In both cases, the subject is “it highlights” in (C) and “it is a fact” in (D).

Neither makes sense. We don’t know what “it” is.

The logic in (E) aslo does not make sense.

So based on the initial gut that the answer was (B) along with some quick analysis of (C), (D), and (E)—-we conclude the answer as (B).

GMAT Prep Questions With Video Explanation

GMAT Prep Question #1
GMAT Prep Question #2
GMAT Prep Question #3
GMAT Prep Question #4
GMAT Prep Question #5