Explanation

Creating a filter: in the original sentence, the phrase "it replaces it" doubly raises the pronoun alert.  The two "its" stand for different things ambiguously. We eliminate (A) and review the remaining answer choices for their treatment of pronouns.

Applying the filter: choice (B) uses one pronoun without ambiguity, fixing that error, but it uses "with" as a conjunction. However, we notice that we may be forced to use "with," since (D) and (E) also use "with." So we'll come back to (B). Choices (D) and (E) both have ambiguous pronouns, so they are out. Going back to (C), we see it also has pronoun errors. In choices (C) through (E), the word "they" could refer to "networks" or "points" with different meanings. So (B) is the only possible option, with or without "with." I would consider the wording of choice (B) poor English style. However, in the hierarchy of considerations, basic grammar comes first; we can use this fact to navigate the questions and worry as little as possible about style. The correct answer is (B).