Here is how I reviewed my wrong question (my answer being E, the correct answer being C):
The question is asking about a reason for difficulty of Austrailian lawyers in deciding whether their client is okay to do uplift agreement.
The key to this question is 3rd paragraph. First half mentions the difficulty mentioned from question. Bascially the "difficulty" is that lawyers will have to investigate legal issues and the financial situations of their client.
The other half mentions the reason of this "difficulty." It will be difficult because the final cost of litigation is subject to change.
So the other half is what this question is asking for.
I think I chose E instead of C, since I messed up the "difficulty" with "reason." Argh
