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gvij2017
A,C and D are clearly out.

Between B and E,
(B). The manufacture and operation of hot-air dryers use fewer natural resources than do the manufacture and use of paper towels.
Negation: The manufacture and operation of hot-air dryers use more natural resources than do the manufacture and use of paper towels.
But we don't know the proportionwise which is used widely in public restrooms. So, I think this is not correct assumption.

(E). The operators of public restrooms are willing to replace paper towels with hot-air dryers.
Negation: The operators of public restrooms are not willing to replace paper towels with hot-air dryers.
If operators are not willing to adopt this replacement strategy, then no matter how much environmental benefits of using hand dryer, they will continue with paper towels.

I think E is better over B.
Neither (B) nor (E) really works though.

The correct answer to an Assumption question should be an assumption necessary for the support of the conclusion of the argument. The conclusion of the argument in this question is:

Conclusion: the environmental impact of the emissions from the paper-manufacturing process would be lessened.

Arriving at that conclusion does not require assuming what (B) says, because the use of resources by dryers does not affect "the enviromental impact of the emissions from the paper-manufacturing process."

Meanwhile, (E) doesn't make sense, because a "ban" does not really require willingness. A ban is something that is enforced regardless of willingness. So, concluding something about the effects of a ban does not really require assuming anything about willingness. I mean, sure, maybe the operators of public restrooms will start a revolution over the use of paper towels if they are not willing to stop using them, but somehow I don't think that the idea of this question is that the argument relies on the assumption that the paper towel ban won't be overturned via a revolution.

So, this question does not include a correct answer.
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Hi

I thought D would be correct answer because if Hot-air dryers are not effective at drying the hands then nobody will use that. So we have to assume it would as effective as hot dryer.
Option B Says " The manufacture and operation of hot-air dryers use fewer natural resources than do the manufacture and use of paper towels."
But if I consider Electricity comes from free source such as Water /Air etc.. in this does it really matter if manufacturers use little more resources than in case of Paper towels ?
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Official Explanation

STEP 1: IDENTIFY THE QUESTION TYPE

The question stem, in addition to asking for a necessary assumption, indicates that a proposal has been made.

STEP 2: UNTANGLE THE STIMULUS

The proposal is a ban on paper towels, which would be replaced by hot-air dryers; the purpose of this ban is to reduce environmental impact. The evidence used to support this proposal is that the manufacture of paper towels uses natural resources and causes emissions.

STEP 3: PREDICT THE ANSWER

To recommend the proposal, the author must assume that the environmental benefits of hot-air dryers outweigh any disadvantages. A good prediction would be that there’s nothing about hot-air dryers that would make them worse for the environment than paper towels.

STEP 4: EVALUATE THE CHOICES

(B) matches this prediction and is thus correct; since one of the stated goals of the plan is to protect the environment and this will be achieved, in part, by cutting down fewer trees, the author must be assuming that hot-air dryers use fewer natural resources than do paper towels. If increased use of hot-air dryers would cause, for example, the mining of metals for their manufacture or of coal or uranium to produce electricity, then their environmental impact might not be less than that of paper towels, and the argument would fall apart.

(A) is irrelevant; the fact that costs won’t increase might be an additional benefit of the proposal, but since the argument is strictly about environmental impact, the author isn’t assuming anything about the cost of the change.

(C) is incorrect because it’s not necessary for dryers to be the only alternative to towels for them to be the better alternative.

(D) is wrong because effectiveness is irrelevant to an argument that is based on environmental concerns.

(E) may be tempting because it might seem that the proposal won’t be effective if people aren’t willing to implement it. However, the proposal is that paper towels should be banned; even if the ban isn’t enacted, the author could still think it’s a good idea.

Answer: B

Hope it helps
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