Yikes, I SO got this wrong. As I re-read the question after 'solving' it last evening, the "FEWER than 170 households were surveyed", which I clearly forgot about in answering the question, means I made the rookiest of mistakes. Anyway, my method seems okay enough and what else is the explanation but an opportunity to undo the wrong?

We know that there fewer than 170 households surveyed regarding pet ownership. Also, we know that if 150 households reported owning one of the pets (dog), that about the lowest the total number of surveyed pet owners can be. So, 150 - 169 is our range.
95 households report owning a cat. Cool then, let's draw a table.
| Pet & Ownership | Cat - Yes | Cat - No | Totals |
| Dog - Yes | x | y | 150 |
| Dog - No | z | | |
| Totals | 95 | | 150 - 169 |
Now, the question wants us to answer - the number of households who own both a dog and a cat; that is x in the table above.
And, the number of households who own AT LEAST ONE of a dog or a cat. What does this mean? At least dog, at least cat, or dog and cat (at least 1, 1 or both). Hence, this wants us to find x + y + z in the table above.
Now, looking at the options, I'd first tackle the 'boths', as that is a constituent in the 'at least ones'. Naturally, I'd go with the smallest number - 65.
The table then looks like:
| Pet & Ownership | Cat - Yes | Cat - No | Totals |
| Dog - Yes | x = 65 | y = 150-65 = 85 | 150 |
| Dog - No | z = 95-65 = 30 | | |
| Totals | 95 | | 150 to 169 |
Clearly, we now have the values for x, y, and z.
x + y + z = 65 + 85 + 30 = 180.
But do we have 180 in the options? No. Is it less than 170? No.
Now, we clearly know that by increasing the number of people in the "Boths", we will be reducing the total number of people - as now, the people removed from the "one pet only" categories, when added to the "both pet" category, will cover 2 pets in 1.
This will make sense when you change the value of "both" to 75. To 65, we are adding 10 then, but from the overall count of 180, we are subtracting 10 - and not 20 - because the 10 when in "one pet" was already contributing for "10", but in "both pets" contributes "20", so a deduction of 20 - 10 = 10, is enough.
However, if the total is 170 - we already know the total is less than that, so while 170 and 75 would be consistent, the condition of the question prevents us from picking those (this is exactly when I forgot this very fact and marked the incorrect answer

Now, moving on to the next bigger number in the list for both - 95.
Now, this means an addition of 20 to the 75, and hence, a deduction of 20 from the total. The total, with 75, was 170, so the deduction will be 20, hence, we get the answers as 95 (for both), and 170 - 20 = 150 (for at least one).I'll draw the table again to visualize this better. Also, note that we cannot go below the 150 total any way because "dogs only" is 150.
| Pet & Ownership | Cat - Yes | Cat - No | Totals |
| Dog - Yes | 95 | 55 | 150 |
| Dog - No | 0 | | |
| Totals | 95 | | |
Here, 0 + 95 + 55 = 150. And at least one is the one for cats = 95.Bunuel