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Jane, who ate little and did not smile even once during the entire meal, tipped the waitress generously, much to her surprise.
Although this answer choice is stylistically flawed as the pronoun her is ambiguous, it is the best of the five answer choices.
The two answer choices that correct the stylistic mistake, namely, the ambiguity, are grammatically incorrect.
Remember that unlike grammatical mistakes, which must always be corrected, stylistic mistakes, namely, redundancy and ambiguity, are not always corrected.
Therefore, if you don't find a perfect answer choice and have to choose between a grammatically incorrect answer and a stylistically flawed one, choose the latter.
Replacing the single word tipped with the four-word phrase gave a tip to makes this answer choice redundant.
This answer choice corrects the original mistake by replacing the ambiguous pronoun her with the latter's. However, it is grammatically incorrect as a result of replacing the verb tipped with tipping.
This answer choice corrects the original mistake by replacing the ambiguous pronoun her with the latter's. However, it is grammatically incorrect. The singular subject Jane does not agree with the plural verb tip.
The omission of the word generously changes the meaning of the original sentence.