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Korean Buddhism, which began approximately 800 years after the death of Buddha, is characterized for its attempt to form a coherent and consistent form of thought and understanding.
This answer choice is grammatically incorrect. The correct idiom is characterized by, not characterized for.
This answer choice uses the correct preposition (by) to form the idiom characterized by.
This answer choice is grammatically incorrect and repeats the original Preposition error. The correct idiom is characterized by, not characterized in.
Although this answer choice corrects the original Preposition error by replacing for with by to get the correct idiom characterized by, it creates a Subject Verb Agreement error.
The singular subject Korean Buddhism does not agree with the plural verb are.
What helps us identify this question as a Subject Verb Agreement question as well as identify the mistake is the following Stop Sign:
A long complex subject / a long distance between the subject and the verb
Although this answer choice corrects the original Preposition error by replacing for with by to get the correct idiom characterized by, it changes the meaning of the original sentence. The phrase understanding of thought is not the same as form of thought and understanding.