Explanation

bucolic and cultural

The sentence starts with the trigger word Though, signaling that the two parts of the sentence will be different. Since you know the town is scenically beautiful, the second blank means something else besides its appearance.
Eliminate attractive, and eliminate picaresque because there is no clue that the town refers to an adventure story. Cultural makes the most
sense for the meaning of the second blank.
The first blank describes the scenically beautiful town, and must mean something similar to attractive country as a contrast to the city.
Eliminate sprawling and desolate, neither of which are suggested by the clues. Bucolic, which means pertaining to country pleasantness, is the strongest fit. The best answers are bucolic and cultural.

Hence options C and D are correct!
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The first part clearly states the following

Though she willingly admitted that the ____(i)____ town was scenically beautiful

So it was bucolic which is the only good choice...then she thoughts that indeed the actual town was a regression in comparison with the previous one.

Hope this helps
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