The question doesn't really make sense -- it means to talk about storage, not about "memory", and compression is done by algorithm. It has nothing to do with the "form of memory" one uses; you can store a compressed file on any kind of hard drive or storage medium.
The question also perhaps requires some knowledge of how data compression works, which makes it unfair, because GMAT questions do not rely on outside knowledge. In real life, some data compression is "lossless", meaning the file is reduced in size, but the original can be restored exactly. "Lossy" compression (like mp3 audio compression) on the other hand permanently erases information that the compression algorithm decides is unimportant, to reduce file size, and a file compressed that way cannot be perfectly restored to its original version. When the question stem says this compression algorithm compresses some files "to lower quality levels", it means to describe lossy compression, where information is permanently eliminated and cannot be recovered. But I don't know how a reader unfamiliar with data compression could guess that's the meaning of "lower quality levels" here.
Anyway, understanding the question that way, we need to know if there will be a market for a compression algorithm that permanently degrades rarely-used files. And I think that's what answer D is getting at; it isn't worded correctly, but I'm guessing it's trying to say that some rarely-accessed files are crucial to business, so if a compression algorithm degrades the information in those files, a company might lose something crucially important. The problem with D is that it doesn't quite say that's what happens: it says 90% of files are
never retrieved (in which case no one should care if the information is degraded), and answer D says nothing about how often the "crucial" files are accessed (answer D also has an SC problem; it says the "issues" are "crucial to business", when it means to say that the information in the files is "crucial"). But since the question is so imprecise throughout, my bet is that D means to say most files are
almost never accessed, but are still critical to business when they are needed. If that's true, this data compression algorithm will not be acceptable to businesses, making D the right answer.
As for the other answers: answer A merely describes what some compression algorithms do, and doesn't even talk about the algorithm in the stem, so it's irrelevant. Answer B suggests businesses will be more interested than individuals, but as long as someone is interested in the product, it will sell, so that's not the right answer. Answer C is not written in English, but it just describes how some products are priced, and tells us nothing about how well this product will sell. And we know storage is "always in demand" as a premise, so that should be true even when a storage system is incompatible with older technology, and E shouldn't be right (though it's the second-best answer to my reading). But this is neither a well-written nor a well-conceived question, and as always, I'd advise test takers to focus exclusively on official questions for Verbal practice, because they'll always be precisely worded and logically airtight. Prep company Verbal questions rarely are.