Good news there -----fewer people catching this kind of illn

首先,正确的选择是C:are,因为它是作为there are fewer people catching this kind of illness now这个从句的动词.
其二,人们往往容易只知其一,不知其二,以为这是个错句.实际上,它只是被省略了而已,原来完整的句子是：（It is）good news (that) there are fewer people catching this kind of illness now.经省略号,比较口语化,但还是可以接受的.
其三,选择了A或B的人,很可能是因为被there所误导,以为指“那里的好消息”.
这是一句很考人的问题.好了,我也得学会安静了.