This sentence is built entirely around two pairs of similar-sounding words: quite and quiet, and ordinance and ordnance. Getting the grammar of each blank right settles the whole question.
Reading the full sentence confirms it: "It is not quite democratic that the parliament should be quiet on issues and resort to passing ordinances rather than have an open debate on the floor of the house." The meaning now makes complete sense: a parliament that stays silent and rules by decree instead of debating is acting in a way that is not fully democratic.
Let's summarize:
So the sentence needs quite, quiet, ordinances, which is option 4 (originally D).