Thanks for the question! So we’re asked here for which one of the following is an effect of the extension of territorial waters beyond the three-mile limit. Well, where in the passage is this talked about? This is discussed in lines 48-52, where we’re told that “the establishment of extensive fishery zones, extending territorial authority as far as 200 miles out from a country’s coast, has provided the opportunity for nations individually to manage larger ecosystems.” So that’s pretty much what (C) says, which is one way of just picking it over (E). But also, notice that the “larger” refers to “ecosystems,” not “nations.” So there’s not really a distinction drawn here between smaller nations and larger nations, and indeed, I don’t think this distinction is made in the entire passage. And so an answer choice that singles out “smaller nations” is unlikely to be supported by the passage, and thus incorrect.
Hope this helps! Feel free to ask any other questions that you might have.