Step 1: Apply the opener test: A starts with "Yet", needing a prior claim to contrast with, so it cannot open. C starts with "Policymakers... are now racing", a response that needs a prior problem to react to, so it cannot open either. D starts with "This capability", where "this capability" needs to be defined first, so D cannot open. Only B, "Artificial intelligence has made it possible to generate remarkably realistic text, images, and video", introduces the topic with no dependency, so B opens.
Step 2: Trace "this capability": D says "This capability has enormous creative and commercial potential", directly referring to what B just described (generating realistic content), so D follows B.
Step 3: A opens with "Yet", pivoting from the positive potential in D to a risk, "this same technology can be misused to spread misinformation at scale", so A follows D as the contrasting turn.
Step 4: C, "Policymakers around the world are now racing to draft frameworks that balance innovation with accountability", is the logical response to the risk just raised in A, making it the concluding sentence.
Step 5: The chain B then D then A then C matches option (a).
Correct option: (1) BDAC.