(E) is the correct answer because the argument claims that all actions are products of one's environment, but then concludes that law-abiding citizens are truly responsible for the crime, which contradicts the principle that their actions are too, arguably, are just a product of their environment, and as such are not blameworthy.
(B) is true but it is irrelevant to the conclusion, the argument is not concerned with whether the action is socially acceptable or unacceptable, only whether we can assign blame. Hence, it is not a flaw in this argument.