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From the statement:

Evidence : Beginners were unable to clearly read words in the list even when they were able to read it in the paragraph - irrespective of whether they read paragraph first or list of words first - Why?

Pre-think --> Beginners are facing some difficulty with lists that they dont face while reading the paragraph.

A) Because several words were used more than once in the paragraph but only once in the list, the list was shorter than the paragraph --> When several words used in the paragraph helps the students to read the words in paragraph clearly, then the students reading the list after reading the paragraph should be able to read list better than how they read the words in the paragraph, which is not the case. So this option does not resolve this part of the evidence. - Incorrect

(B) In reading the paragraph, the more experienced readers were better at using context to guess at difficult words than were the beginning readers. - Runner Up - It explains why the experienced readers were better, but not why the beginners were facing the difficulty. - Incorrect

(C) The more experienced readers sounded out difficult words, while the beginning readers relied solely on context to guess at difficult words. - Provides us the exact details on why the beginners were facing the difficulty with the list alone and not the paragraph - they were unable to read the words without understanding the context and so were not able to read the list properly irrespective of whether they read it first or after reading the paragraph. - Correct

(D) Both tasks used the same words, so that the words the children read in whichever task was performed first would be recognized in the second task. - Provides no information on the ability or inability of the beginners - Out of Scope - Incorrect

(E) The beginning readers made more pronunciation errors than the more experienced readers did in reading both the paragraph and the list. - Nothing mentioned about the poorer performance while reading the list when compared to paragraph - Incorrect
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Each child in a group of young children read aloud both a short paragraph and a list of randomly ordered words from the paragraph. The more experienced readers among them made fewer pronunciation errors in whichever task they performed second, whether it was the list or the paragraph. The order in which the two tasks were performed, however, had no effect on the performance of beginning readers, who always made fewer pronunciation errors when reading the paragraph than when reading the list.

Which one of the following, if true, most helps to explain why the order in which the tasks were performed was not significant for the beginning readers?

(A) Because several words were used more than once in the paragraph but only once in the list, the list was shorter than the paragraph. - WRONG. Were the words used common in both? There are several questions that can be raised in this choice.
(B) In reading the paragraph, the more experienced readers were better at using context to guess at difficult words than were the beginning readers. - WRONG. Nothing about beginners so irrelevant.
(C) The more experienced readers sounded out difficult words, while the beginning readers relied solely on context to guess at difficult words. - CORRECT.
(D) Both tasks used the same words, so that the words the children read in whichever task was performed first would be recognized in the second task. - WRONG. Again confuses than serves our purpose.
(E) The beginning readers made more pronunciation errors than the more experienced readers did in reading both the paragraph and the list. - WRONG. A comparison is not our concern.

One of the brutal passage to read.
In C 'The more experienced readers sounded out difficult words' serves no purpose. The latter part helps us understand why the context was missed in reading list whether read first or later.

Answer C.
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