Answer:
A or C I'd pick A myself.
Explanation:
Anything with a comma in front of instead is simply not correct. The sentence is too long and the change too abrupt to be handed with a comma. So B and D leave a little bit to be desired.
I don't think C is correct, but it is just marginally not so. If I saw it in a student paper, I'd probably ignore it. I don't think you need the comma after instead. I would pick a myself, but that does not mean I'm correct.
Don't be a bit surprised to see the answer is C. I think the comma after instead is too much, but that is a matter of opinion.
Instead is an adverb. Most of the time you need not emphasize adverbs. It's a very hard call.