So, I know folks seem to like LSAT but the LSAT can throw you off and is somewhat different from the GMAT in the sense that A and B for example are nuanced / typical LSAT answer choices which seem to be rarely be present in this manner on the GMAT but are present on almost every question on the LSAT, so I am glad you did not get caught up in A vs. B.
Second, I really did not get the second part of the passage and what it implied/assumed; seems disconnected from the first part. I am not sure if there is a typo or maybe again I am not used to the passage, so glad you did not get caught up in that like I did. I just had to say screw it and go answering.
I answered the question in my mind while reading - the assumption is that animals that have plenty of food and no exercise are basically not healthy.
As to why C, I would say there is absolutely no reason C would play any role as an assumption. It just seems like a random statement that does not seem to have a part to play (maybe it plays a part in the second part that I could not tie to the first one) but in my mind, it was not a required part of the argument since we are not concerned with wild animals - we are not doing experiments on them. They are out of the question. The argument is not that we should experiment on freshly caught wild animals so this is taking us in a wrong direction.
Hope it helps.
Thanks Mislead for posting it. Got my brain thinking...