Every year, about 200,000 people are taking the GMAT.

I'm confused between B&E. Can anyone please explain how to interpret the intended meaning here.

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mriduljain97

Usage of "every" is incorrect here. We use "every" when we are thinking items collectively and each when we are thinking items individually.

Option B is the correct choice. It took me 1:05.

The main split here is 1. Every Vs Each and 2. Usage of Simple Present Tense Vs Present Continuous.
1. Every Vs Each Split
We use each to refer to individual things in a group or a list of two or more things. It is often similar in meaning to every, but we use every to refer to a group or list of three or more things.

Each one takes turns cooking dinner in the evenings.

Everyone takes turns cooking dinner in the evenings.

Almost every car in the car park was new.
Not: Almost each car …

Each of us has a bicycle.
Every one of us has a bicycle.
Not: Every of us …

2. Simple Present Tense Vs Present Continuous
When stating a fact, it is required to use Simple Present Tense.
Hence, option B comes out as a clear winner among all the answer choices.

Can you please give some more examples of sentences where "each" is correct and "every" is incorrect?

Sure, here are the examples exemplifying the correct usage of either "Each" or "Every".
1. Each vs. Every (Two Objects)
Jessica wore anklets on each ankle.
Jessica wore anklets on every ankle.
She had paint on each leg.
She had paint on every leg. (That is, unless "she" is, say, an octopus or other more-than-two-legged animal.)
My parents are arriving tomorrow, and each of them will be on a different plane.
My parents are arriving tomorrow, and every one of them will be on a different plane. (That is unless "I" have more than two parents.)
2. Each vs. Every (More than Two Objects)
The bride received each item on her registry.
The bride received every item on her registry.
3. Each and Every
It is common to see each and every used alongside one another for emphasis as illustrated in the following sentence:
The bride received each and every item on her registry.

There's no difference between "each" and "every" in this context. You can use either. When a sentence says "every year, 200,000 people take the GMAT", that sentence is clearly conveying an approximate number (no one would ever take that to mean "exactly 200,000 people take the GMAT each year"). So E seems completely fine to me, and seems to me to mean exactly what B means. The "OE" relies on the "meaning of the original sentence" to rule out E, but the original sentence is wrong, which is why we're looking for a different answer. There is no "original meaning" we need to match (and I'd argue B and E both convey the same meaning regardless), so I don't see any good way to choose here between B and E. They're both perfectly good sentences.

Is sound as if. Exactly 200k people take GMAT ever year. Don't we need an approximation?

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I don't think it's natural to think that sentence is conveying a precise value. If we say Company X made $3 million in profit last year, we don't take that to mean "Company X made exactly $3,000,000.00 in profit". We (correctly) assume that numbers like "3 million" or "200,000" in sentences like this are rounded off. It's only really in Quant questions, where numbers are exact unless stated otherwise, that you'd interpret these types of figures as if they were precise values.

But even if we do assume answer E means "exactly 200,000 people take the test each year", how do we know that meaning is wrong, without bringing outside information to the question?