To allay his advisors' fears, the king promised sanctuary for refugees from foreign lands, a decision that transmuted his kingdom's current policy toward foreigners.

We choose transmuted which means change, over transfigured which means transform into something more beautiful or elevated. We have no information to suggest that providing sanctuary to refugees was a more elevated policy than not doing so. We know that this was done to allay the fears of advisors.

Though

To incite his advisors' fears, the king promised retaliation for refugees from foreign lands, a decision that transmuted his kingdom's current policy toward foreigners.

creates a grammatically correct and meaningful sentence, it does not agree with current common sense, especially the idea of promising retaliation for refugees from foreign lands (though actively contemplated by rightist parties in European countries burdened with excessive refugees who seem to be transgressing law and order)

This is not a good GRE question and is not at the same level as questions created by the ETS. The questions created by ETS are precise and unambiguous and do not allow for alternative interpretation.

To stint his advisor's fears does not make much sense. The usage is weird.


Hence the correct choices are B, F and H.