First, let's identify the critic's conclusion: "This is a specious distinction" (between literary and genre fiction.)
Sometimes it helps to break down the passage in terms of question and answer. This helps us identify the support for the conclusion.
Conclusion: "This is a specious distinction." "Why?" Sub-conclusion: "Because no work should be interpreted." "Why?" Support: "Because interpreting work cuts us off from its emotional impact." This is how I was able to identify it as support for the conclusion, which is answer choice B.
Remember, this passage is from the voice of the critic. C is incorrect because it is not spelling out implications of the critic's conclusion. Rather, it is spelling out the negative implications of the first argument, which the critic presents and rejects. This argument says that "literary" fiction should be interpreted. No it shouldn't, the critic says, because we will lose the emotional impact. The basis for the distinction is flawed, which makes it specious.