Rearrange P, Q, R, S to form a coherent sentence: P: its policy and announced reforms / Q: that the mounting tension was heading / R: the colonial Government, now seeing / S: towards a crisis, wisely decided to change

Reading the parts: 'the colonial Government, now seeing (R) that the mounting tension was heading (Q) towards a crisis, wisely decided to change (S) its policy and announced reforms (P).' This forms a coherent sentence describing the colonial government's response. R introduces the subject, Q provides 'that the mounting tension was heading', S completes 'towards a crisis, wisely decided to change', and P concludes with 'its policy and announced reforms'. Hence the correct order is R Q S P, option (b).