The active voice sentence is "People drink champagne on New Year’s Eve." Choose the option that best expresses this sentence in the passive voice.

Introduction / Context:
This question focuses on converting a habitual action in the simple present tense from active to passive voice. The original sentence "People drink champagne on New Year’s Eve" describes a general custom. In the passive form, the emphasis shifts to "champagne," the thing being drunk, while the idea of a regular practice remains.

Given Data / Assumptions:

• Active sentence: People drink champagne on New Year’s Eve.
• Subject: people (general, indefinite).
• Object: champagne.
• Verb: drink (simple present).
• Time phrase: on New Year’s Eve, expressing a customary occasion.

Concept / Approach:
To change simple present active sentences that express general truths or habits into passive, we use the form: subject (former object) + is/am/are + past participle. Because "champagne" is treated as an uncountable singular noun, the correct auxiliary is "is." Thus, "drink" becomes "is drunk." The time phrase "on New Year’s Eve" remains at the end, and the original subject "people" is omitted because it is indefinite and not necessary in the passive sentence.

Step-by-Step Solution:

Step 1: Identify "champagne" as the object that will become the subject of the passive sentence. Step 2: Recognise that the verb "drink" is in the simple present tense; the passive form will be "is drunk" for a singular uncountable noun. Step 3: Decide whether to include the agent. Since "people" is generic and not specific, it can be omitted in the passive sentence. Step 4: Attach the time phrase "on New Year’s Eve" at the end. The final sentence is: "Champagne is drunk on New Year’s Eve."

Verification / Alternative check:
The sentence "Champagne is drunk on New Year’s Eve" is a standard textbook example of a simple present passive sentence that expresses a custom. It preserves the idea that on this particular occasion people commonly drink champagne, but now the focus is on champagne itself. The grammar is clear and correct.

Why Other Options Are Wrong:

Option B: "Drinking of champagne is done on New Year’s Eve." is grammatically possible but heavy and unnatural due to its nominalised structure "drinking of champagne is done." Option C: "New Year’s Eve was the day when people drank champagne." changes the tense to past and also shifts the sentence structure away from a simple passive transformation. Option D: "People on the eve of the New Year drink champagne." is active voice and merely rearranges the words without achieving passive voice. Option E: "Champagne has been drunk on New Year’s Eve by people." uses present perfect passive, which suggests completed events rather than a general custom.

Common Pitfalls:
Learners sometimes try to keep the subject "people" in the passive sentence, leading to wordy structures like "Champagne is drunk by people." While not always wrong, it is unnecessary when the agent is general. Another pitfall is changing the tense to past or perfect forms, which alters the meaning from a general habit to a one-time or completed event. Always keep the original tense and aspect unless the question specifically instructs otherwise.

Final Answer:
The correct passive voice sentence is Champagne is drunk on New Year’s Eve.