This paragraph moves along a clear emotional arc: praise, then a grim turn, then relief. Sentence i gives the praise and sentence vi gives the relief, both fixed. So the four middle sentences must carry the grim turn and land on something dark enough for "however" in vi to push against. Pronouns settle the rest: "their" in ii needs "physicists" in front of it, and "it" in iv needs "a bomb" in front of it.
Read straight through, the paragraph runs from the greatest achievement of science, through the physicists' pure motive, to the bomb, its destructive power, the dread it left behind, and finally the peaceful uses that console the scientists.
Let's summarize:
The middle sentences run iii, ii, iv, v, so option (C) is correct.