Here is how you solve it.
OP don't assume that town X has only Globe and World newspapers
# of People in town X = T
# of People who don't read newspapers = D
# of People who read a newspaper = T-D
# of people who read only Globe = G
# of people who read only World = W
# of people who read both World and Globe = B
# of people who read neither globe nor world, perhaps they read a third kind called Nonsense Newspaper = N
T-D = G+W+B+N
We need to find out D+N
Statement 1 gives D = 1000 & T=2500
Statement 2 gives G=700 & W=600
We don't know B to solve for N.
Hence answer is E.