Question:
The employees viewed the work-sharing plan with hostility, having feared that it will undermine the seniority system and negatively affect their retirement benefits.
Choices:
In this question, the phrase "having feared" should be immediately suspicious, because we have two verbs where one would do: why not use "fearing?" You can see that only two choices offer the verb "fearing." Of the two choices, "fearing that it will undermine" doesn't match the past tense verb "viewed." That leaves you with choice (B), the correct answer. "Fearing that it would undermine" is proper.