Final answer:
Ethidium bromide, as an intercalating agent, can cause both insertion and deletion mutations leading to frameshift mutations which can significantly alter protein structure and function.
Step-by-step explanation:
DNA damage caused by ethidium bromide results in both insertion and deletion mutations. The correct answer is E) both insertion and deletion. Ethidium bromide is an example of an intercalating agent, which causes mutations by inserting itself between the bases in the DNA helix, leading to mistakes such as insertions or deletions during DNA replication. These types of mutations can create frameshift mutations, which are usually more detrimental than point mutations because they can change every amino acid that follows the point of mutation, potentially altering the entire structure and function of the resultant protein.