This paragraph is built on a single contrast: what Indians claim to be proud of, set against how they actually behave. Sentence i and sentence vi are already fixed, so the whole task is to order ii, iii, iv and v. Two signposts decide it. "On one hand" in i is waiting for "on the other hand" in ii, and "nor" in vi is waiting for a negative clause, which only iii provides. That already tells us ii sits in the second half of the middle block and iii sits last.
Read in full: "On one hand we are proud of being Indians, the citizens of the land where Buddha and Gandhi taught the principles of love and non-violence, on the other hand we behave as if we were still at the dawn of our civilization; murders of our own brothers and sisters is not the way to please Ram or Rahim, nor does it fetch us any prosperity."
Let's summarize:
So the middle sentences run iv, v, ii, iii, and option (D) is correct.