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Explanation from GMAT FREE, the source

The first sentence gives the council's opinion. The second sentence has a few parts, which we can call 2a through 2c. In 2a, we have the view of faculty, 2b we do away with proctoring, and in 2c we have an effect, a benefit, of making the change proposed by the council. The final sentence gives additional elaboration. So in the first bold portion we have the view of the faculty, and in the second bold portion we have a beneficial effect of making the change proposed by the council. The second is a prediction drawn based on the first one. Although the opinions belong to different people, they are not contrary.

Applying our filter, we can start with the fact that the second boldface is an opinion. That rules out (B) and (C) based on their latter portions. Then we review based on the first boldface, a view that is used as evidence. The boldfaced statements are on the same "side" as each other and as the argument as a whole. That fact rules out (A), (B), (C), and (E). The correct answer is (D).
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Passage Breakdown:

First Boldfaced Portion:
"If, as most faculty appear to believe, take-home exams, which are not proctored anyway, are the only exams on which students might actually dare cheat..."
This is a statement that is used to support the idea that proctoring guidelines might be unnecessary. It suggests that since students are likely to cheat only on take-home exams (which are unproctored), the strict proctoring of in-person exams might not be necessary.

Second Boldfaced Portion:
"...the school would allow students to schedule their own final exams without damaging the integrity of these exams."
This is the main position that the argument is advancing. The argument suggests that by removing strict proctoring guidelines, students could schedule their own exams without compromising exam integrity.

Analyzing the Answer Choices:
A. The first is an objection that has been raised against the position taken by the argument; the second is the position taken by the argument.

This is incorrect because the first bold portion is not an objection; it's supporting evidence for the argument.

B. The first is the position taken by the argument; the second is the position that the argument calls into question.

This is incorrect because the first bold portion is not the main position of the argument, and the second bold portion is not being questioned.

C. The first is a judgment that has been offered in support of the position that the argument calls into question; the second is a circumstance on which that judgment is, in part, based.

This is incorrect because the argument does not call into question the position supported by the first bold portion.

D. The first is a judgment that has been offered in support of the position that the argument advances; the second is that position.

This is correct. The first bold portion supports the argument's main position, which is articulated in the second bold portion.

E. The first is a claim that the argument calls into question; the second is the position taken by the argument.

This is incorrect because the argument does not question the claim made in the first bold portion; instead, it uses it to support the argument.

Final Answer:
D
. The first is a judgment that has been offered in support of the position that the argument advances; the second is that position.
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