As per me, the correct answer is option (E).
Understanding the passage:
1. Astronomer's view: Astronomical observatories in many areas have become useless because light from nearby cities obscures the stars.
2. Claim of many people: such interference from city light is inevitable, because streetlights are needed for safety
3. Astronomer's counter example: In Sandsville, observatory's view is clear, even though safety is not compromised
How:
a) Sandsville has restricted unnecessary lighting
b) Special street lamps that direct all light downward (means no light goes upwards/outwards impeding the view of the observatory
4. Astronomer's conclusion: It is possible to have both well-lighted streets (thus no compromise on safety) and dark skies (needed for astronomical observatories).
Question: Find the mechanism or structure of the astronomer's argument.
Thought Process:
As we can see, the author has simply provided a counter-example that serves to invalidate/nullify the claim of many people. This is the exact mechanism at play here.
Let us now look at the options.
(A) appealing to scientific authority to challenge a widely held belief
Irrelevant. The only two entities here are the astronomer, and the general public. The passage makes no mention of a scientific authority, hence this cannot be the mechanism of the astronomer's arguement.
(B) questioning the accuracy of evidence given in support of the opposing position
Interesting choice. But, the astronomer is questioning a claim made by the general public, he is not questioning any evidence in this argument. He does not mention any evidence from the opposition, but only the claim in this argument. Hence, this is not the correct mechanism.
(C) proposing an alternative scientific explanation for a natural phenomenon
Irrelevant. The only natural phenomenon here is the dispersion of light from streetlamps. The astronomer does not provide an alternate scientific explanation for this. All he provides is a counter example, where the city uses a type of streetlamps that changes how light gets dispersed (only downwards). But this is not an alternate scientific explanation for how dispersion of light occurs. More importantly, this has nothing to do with the mechanism used in the argument to justify his conclusion.
(D) making a distinction between terms
Irrelevant. The astronomer does not mention any terms as such to differentiate. This is definitely not the correct choice.
(E) offering a counterexample to a general claim
This matches our analysis. The astronomer first presented a general claim (made by most people - interference is inevitable, because, safety)), and then provided a counterexample (Sandsville) to debunk the general claim (by saying that interference is not inevitable, can be avoided, even with safety).
Hope this helps.
Cheers!