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Unable to understand the OE. For option 1 --> 1/m > 1/n > 1/2 . I reduced it as N > M > 1/2. And the question as MN > M + N (OK to do as M & N are greater than Zero)
Note, question does not say M & N are integers. Now, if you consider M to be 2/3 & N to be 3/2 then the question is not satisfied ie MN < M + N. BUT, if N = 5, M = 4 then 20 > 9 ... So with this option we cannot say if MN > M + N or MN < M + N.
Similarly as the OE states option 2 cannot answer the question. So, should the answer not be 'E'.