Here, the singular word is 'saga' and the plural word is 'institutions'. Let's not get distracted by the phrase 'of the educational institutions' as it is just a distractor (prepositional phrase). From the sentence given, the subject is the 'saga' of the educational institutions and so the verb to be used should agree with our singular subject 'saga'. In the given sentence, there's an error and that is in the usage of are, which is plural, whereas we need a singular verb that can be used in the present continuous tense. Hence, the correct answer is option A).
Option B) is incorrect because using 'has' in the place of 'are' makes the sentence grammatically incorrect since the sentence is in the present continuous tense.
Option D) would not create a grammatically correct sentence since the sentence is in the present continuous tense and a future tense verb won't work in this context.
Option C) does not pick out the error in the given statement as institutions and institution (singular and plural nature of the word) would not correct the sentence in any way.