Correct option is D
This paragraph discusses the decline of a comprehensive understanding of literary history and its consequences on education.
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C (Literary history can be useful and is increasingly necessary): This introduces the topic and sets the context for the discussion.
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A (Scholars specialize in single fields, teachers teach single works): This elaborates on the narrowing scope in literary studies.
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B (Students leave school knowing a few landmark works but little of the landscape which surrounds them): This highlights the consequence of the narrowing focus.
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D (Larger narratives are becoming lost; the perspective afforded by a general view is not widely available): This concludes by emphasizing the loss of a broader perspective.
Thus, the logical sequence is
CABD, matching with option (d).