This question asks you to pinpoint what James and Margaret disagree on.
James argues that community colleges work to meet the educational needs of the community. But that universities do not as they have different goals.
Margaret argues that the primary goal of a university is also to serve the needs of the community because people attend universities for the same reason they attend community college- to prepare themselves for work.
Looking at these two statements, I see that they are saying two different things. James says community colleges NOT universities work to meet the educational needs of the community. Margaret says universities also have the goal of serving the needs of the community. This is a disagreement.
Answer (A) reflects this disagreement. As noted above, James thinks that universities do not work to meet the educational needs of the community while Margaret thinks they do.
Answer (D) is incorrect because it doesn't focus on the disagreement between them. James and Margaret are debating the goal of a university. This answer choice though focuses on what the needs of the community are. James and Margaret don't discuss this so it is outside the scope of their argument.