This is a very good meaning based practice question. Leaving aside the three filler choices namely B, C, and D, which do not merit much discussion, the real contention is between A and E, both of which you may note are grammatically correct.
The core sense of the topic is that a professional lawyer is advising and warning his client that Jerrod should tell the truth now or he (Jerrod) could go to jail. He cannot stand for the lawyer since there is no meaning in advising Jerrod when the lawyer himself could go to jail. Nor can we assign one 'he' for the lawyer and the second for Jerrod. That is the reason E categorically removes the first 'he' and replaces it the subject Jerrod himself.
More important, however, is the use of the modal verb 'had better tell'. Remember A uses the term, 'should have told', implying that Jerrod did not take an earlier opportunity, to tell the truth. This is not the intention of the advice and warning. The warning is that if you do not tell the truth now, you could rather go to a long term imprisonment. 'Better be careful' is the essence of the warning. That is why E says "had better tell" rather than "had better told".
It might now be clear how deeply this seemingly simple question is testing the intent.