Thanks for the question! So first let’s take a look at what (B) is saying. (B) says that the two professors disagree about whether any North American whose native language isn’t English should be allowed to fulfill the foreign language requirement by studying his or her own native language. So for example, let’s say we have an American whose native language is Mandarin Chinese. Can they study Mandarin Chinese for their own language? Or a student who speaks Arabic at home? And that shows why (B) is wrong. The issue is about whether a language native to MANY Americans can fulfill the foreign language requirement, and not whether ANY American who has a foreign mother tongue gets to study his/her native language. So (B) isn’t what’s at issue here and is wrong.
(E), on the other hand, talks about whether a language that’s the native language of many North American justifies prohibiting using it (by anyone) to fulfill the university’s foreign language requirement. So a lot of people in the US speak German as a native language? Then can’t study German at the school for the foreign language requirement. Beckstein would agree with this (odd) statement, whereas Sedley would disagree. And this is the point at issue, and is the correct answer.
Hope this helps! Feel free to ask any other questions that you might have.