If we distill this passage down we get a few statements: Southern half of some region was covered by water during a period when dinosaurs lived. Dinosaurs only lived on land. Thus some swimming reptile was not a dinosaur. No single dinosaurs species lived throughout this period.
The southern half of a certain region of the earth was covered entirely by water during the Cretaceous period, the last 75 million years of the Mesozoic era, the era when dinosaurs roamed the earth. Dinosaurs lived only on land. Thus, Plesiosaurs—swimming reptile that lived during the Cretaceous period exclusively—were not dinosaurs. No single species of dinosaur lived throughout the entire Mesozoic era.
If the statements in the passage are true, each of the following could be true EXCEPT:
(A) Dinosaurs inhabited the northern half of the region throughout the entire Mesozoic era.
Dinosaurs live on land. The northern half of the region may have been water free during the entire M era. This leaves open the possibility for dinosaurs to live there throughout.
(B) Plesiosaurs did not inhabit the southern half of the region during the Cretaceous periods.
P are not dinosaurs; they are swimming reptiles that lived during the C period. It is entirely possible that they swam/inhabited in the southern region covered by water therefore.
(C) Plesiosaurs did not inhabit the southern half of the region before the Cretaceous period.
This COULD be possible, since the argument is effectively only confirming that the region was covered in water during the Cretaceous period only. We don't know for sure what the water situation was before or after that period.
(D) Dinosaurs did not inhabit the northern half of the region during the Cretaceous period.
The question is asking what COULD be true. And we know nothing about the northern part of the region. The passage, I daresay, heavily implies that only the southern part was covered in water, so it's possible dinosaurs lived in the north.
(E) Dinosaurs inhabited the southern half of the region throughout the entire Mesozoic era.
Well, the argument is saying the southern half was covered by water and dinosaurs lived only on land. So... yeah... this one can't be true.
Some Kudos would be nice