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E is the most conservative choice. We are given that if X does not intervene then Y will fall under enemy influence. However, even if X intervenes, we cannot ascertain the outcome for sure because nothing is given about if X does
C biases the possible result towards country Y not falling under enemy influence. That we do not know and yet, C takes a more aggressive/biased stance than E in staying neutral as to the outcome of Y if X does not intervene