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.

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