Then it's D.
My first answer was E but after reading this....
Caas
OA is neither C (wich BTW I got too) nor E.

... I solved again and it took some (well, a lot more than that) time to get D.
from the stem:
Median is 6 & mode is 7 so series and the total is 42 (7*6 ie mean into no. of terms) could be
_ _ _77_
it can be nothing else ...figuring this took a lot of time..maybe it'll be better to guess in the GMAT.
If all terms were 7, the median wont be 6 and the if the last 3 terms were 7, the total won't add up to 42.
since the median is 6 the series will be
_ _ 577_ no other way to get a 6 median
now, lets chk the statements
I:
the sume of the middle 2 no's is 12 (7+5) so the other terms add up to 30
and the first 2 terms are 1/5,
or the last 2 terms are 4/5 of 30
and thats 24
One of these terms is 7 so the other is 17
.....................suff
II:
this was tougher to figure out and took longer.
so the series is
_ _577_
we know range = 16
so let the series be
x y 577 (16+x)
so
x + y + 16 + x = 23
2x + y = 7
so the first 2 number's of the series can only be
1,5 or
2,3
nothing else satisfies the condition.
but if the first 2 numbers were 1,5
then the series would be bi-modal (2 5's & 2 7's)
so the first 2 numbers are
2,3
we can find out the largest number.....................suff