Thanks for the question! Let me answer your last question first: it can’t be 3 tenants, 3 homeowners because we’re told that the committee “will consist of exactly five representatives.” So if each group sent up 3, that’d be 6, which would break that rule.
Now as to why we’re limiting it to 2 tenants in this question: we’re told that M is the chairperson of the committee. We also know that M is a tenant. Rule 2 tells us that the chairperson must be a representative belonging to the group from which exactly two representatives are selected. In other words, there are going to be exactly two representatives selected from the tenants.
Hope this helps! Feel free to ask any other questions that you might have.