It was her view that the country's problems had been ________ by foreign technocrats, so that to invite them to come back would be counterproductive.

Foreign technocrats view about country's problem can neither be 'beguiled' (to deceive), nor 'besieged' (to hem in with armed forces, esp. for a sustained attack; lay siege to).Therefore, (1) and (3) can be ruled out. If foreign technocrats view is 'incessant' (ceaseless, continuous), which is irrelevant according to the passage, and if it is 'attenuated' (to lessen in intensity, severity), then their coming again would be productive; hence (4) and (5) are ruled out. Hence, (2) is the only option that fits our prediction as 'exacerbation' means to make more intense or sharp, thus the answer.