I. According to some exports, subsidising crop insurance to a large extent may be bad for the environment since farmers may take .......... such as farming on food plains or sleep hills.
II. In the 1990s, Germany was known as the ‘sick man of Europe’ and had high unemployment but its success today is on account of the huge ........ it took in reforming the labour market.

Risk is most appropriate and suitable in the given context of the sentence.
The gramatically correct sentences would read as:
I. According to some exports, subsidising crop insurance to a large extent may be bad for the environment since farmers may take risks such as farming on food plains or sleep hills.
II. In the 1990s, Germany was known as the ‘sick man of Europe’ and had high unemployment but its success today is on account of the huge risks it took in reforming the labour market.

Option D is correct option.