What this argument is saying can be thought of as follows:
Most people like the bill and it doesn't violate basic human rights. It won't be passed, nor will anything similar. Those who are negatively affected by it are influential people.
Therefore, if this country is a democracy, it is not a good one.
So we can think of this as, in a well-functioning democracy, if a bill is popular and doesn't violate basic human rights, then it should be passed, regardless of if it negatively affects the influential.
This is essentially what answer choice E is saying.