I had difficulties in discerning between answer choice A and B. The credited answer is B, according to the book, but I could easily see A.
Gas station owner: Increased fuel efficiency reduces air pollution and dependence on imported oil, which has led some people to suggest that automobile manufacturers should make cars smaller to increase their fuel efficiency. But smaller cars are more likely to be seriously damaged in collisions and provide less protection for their occupants. Greater fuel efficiency is not worth the added risk to human lives; therefore, manufacturers should not seek to increase fuel efficiency.
The reasoning in the gas station owner's argument is flawed because the argument
(A) presumes, without providing justification, that it would be impossible to reduce the likelihood of dangerous accidents for small cars. (a plausible option, although it suffers from a degree issue, e.g. "impossible", left for later.)
(B) concludes, on the basis of the claim that one means to an end is unacceptable, that the end should not be pursued. (another plausible option, and the credited answer, yet again suffers from a degree issue similar to (A), e.g. "unacceptable", left for later)
(C) draws a conclusion about what should be done from premises all of which are about actual matters only. (A mix of facts, suggestions, and likely possibilities, nixed this one)
(D) presupposes the truth of what it sets out to prove. (this is not a circular argument, nixed this one)
(E) presumes, without providing justification, that increasing fuel efficiency is the only way to reduce air pollution. (air pollution was one of two concerns in the background material, nixed this one)