"That" can refer to only noun just before "that" ??

[Everything OR Nothing]

Bydeveloping the Secure Digital Music Initiative, the
recording industry associations of North America,
Japan, and Europe hope to create a standardized way
of distributing songs and full-length recordings on the
Internet that will protect copyright holders and foil the
many audio pirates who copy and distribute digital
music illegally.
(A) of distributing songs and full-length recordings
on the Internet that will protect copyright holders
and
foil the many audio pirates who copy and
distribute
(B) of distributing songs and full-length recordings
on the Internet and to protect copyright holders
and foiling the many audio pirates copying and
distributing
(C) for distributing songs and full-length recordings
on the Internet while it protects copyright
holders and foils the many audio pirates who
copy and distribute
(D) to distribute songs and full-length recordings on
the Internet
while they will protect copyright
holders and
foil the many audio pirates copying
and distributing
(E) to distribute songs and full-length recordings on
the Internet and it will protect copyright holders
and foiling the many audio pirates who copy and
distribute


The correct Official answer is A. But "that" in this option seems to modify internet instead of "a standardized way". Please clear my dilemma .

[tim]

It modifies "a standardized way". Here's the trick: If there are two things the "that" can modify and one makes sense but the other one doesn't, go with the one that makes sense.