The first step uses LAH which is a hydride donor. So H- attacks any one carbonyl carbon and forms an aldehyde and acid attached to the ring.
Then Conc. KMno4 is used. As far as i know, it cleaves c=c and oxidises them into acids. The third step then says heat, so it leads to the formation of the anhydride on both sides.
However, this product has nothing to do with the correct answer which is option (A) . Somehow the product formed consists of 2 seprate 5 membered rings. Any idea on where i went wrong?