Concept:
Grafting becomes successful only when stock and scion establish cambial and vascular connection.
Step 1: Callus production.
First, callus parenchyma cells are produced at the cut surfaces of stock and scion.
\[
B=\text{Production of callus parenchyma cells}
\]
Step 2: Intermingling of callus.
Callus cells of stock and scion intermix with each other.
\[
A=\text{Intermingling of callus cells}
\]
Step 3: Cambial differentiation.
Some callus cells differentiate into cambial cells.
\[
E=\text{Differentiation into cambial cells}
\]
Step 4: Cambial continuity.
The cambium of stock and scion becomes continuous.
\[
D=\text{Establishment of cambial continuity}
\]
Step 5: Vascular tissue formation.
Finally, new xylem and phloem tissues are formed.
\[
C=\text{Formation of vascular tissues}
\]
Thus, the correct sequence is:
\[
B,A,E,D,C
\]
\[
\therefore \text{Correct Answer is (C)}
\]