Thanks for the question! (E) is correct because it is supported by statements in the first paragraph like “fish farming is…a potential contributing factor to the continued decline of ocean fishery stocks worldwide†as well as the discussion in the third paragraph of large inputs of fish into fish farms that exceed outputs. (E) is just saying that it’s a possibility that using wild fish to meet the nutritional needs of farmed fish could result in overfishing, and the author clearly seems to acknowledge this as a possibility.
(C), on the other hand, is incorrect because it’s unclear that fish farming needs to increase. Remember that the author is unsure that fish farming is overall a solution to overfishing problem. In addition, there may very well be other ways that worldwide human protein needs can be met. We don’t know what the author’s opinion on this is, and so we can’t infer this from the passage.
Hope this helps! Feel free to ask any other questions that you might have.