The correct answer is (E).
(E) Inference
Step 1: Identify the Question Type
The correct answer will be a claim that the given statements "most strongly support," making this an Inference question. Even though the word support is in the question stem, this is not a Strengthen question. In a Strengthen question, the correct answer is used to support the argument in the stimulus. Here, as is typical in Inference questions, the order is reversed: the stimulus is used to support the correct answer.
Step 2: Untangle the Stimulus
The opening claim sets out what is required for a work to be called "world literature." It has to be interpreted within at least two traditions: that of the author's home country and that of an external nation. The author then presents three possible uses for a work that would allow it to be interpreted within a tradition: 1) to positively develop a tradition, 2) to negatively highlight something that should be avoided, and 3) to show something radical that inspires change.
Step 3: Make a Prediction
There are a lot of abstract ideas here/. Focus on the strongest points. The opening claim provides some Formal Logic. If a work is considered world literature, it must be interpreted within at least two traditions (the author's national tradition and an external national one):
If world literature _ received/interpreted within writer's own national tradition AND received/interpreted within external national tradition [JRC1]
By contrapositive, if it cannot be interpreted within those two traditions, then it's not really world literature. By the last sentences, there are numerous ways to achieve such an interpretation. While an exact answer will be difficult to predict, keep in mind two things. First, the two traditions are necessary, but not sufficient. Do not mix up the Formal Logic. Second, stick to the scope: what allows for traditional interpretation and what classifies a work as world literature.
Step 4: Evaluate the Answer Choices
(E) is supported. If a work affects the development of only one tradition, then that allows only one interpretation. By the Formal Logic provided, that means it doesn't meet the requirement and thus cannot be considered world literature.
(A) is Out of Scope. The author never mentions anything about what makes a work "well received."
(B) is an Irrelevant Comparison. There's nothing to suggest which group of readers a work "offers more" to.
(C) is another Irrelevant Comparison. The requirement is just that the story be interpreted within both traditions. It does not matter whether one interpretation is "more meaningful" than the other.
(D) is Out of Scope. The author makes no mention of being "influenced by" other works.