B is a nice trap.
The conclusion is the first sentence. The "principle" is actually the second sentence:
"Universities, as guarantors of intellectual freedom, should encourage the free flow of ideas and the general dissemination of knowledge."
A is the answer.
A university should not be entitled to patent the inventions of its faculty members. Universities, as guarantors of intellectual freedom, should encourage the free flow of ideas and the general dissemination of knowledge. Yet a university that retains the right to patent the inventions of its faculty members has a motive to suppress information about a potentially valuable discovery until the patent for it has been secured. Clearly, suppressing information concerning such discoveries is incompatible with the university's obligation to promote the free flow of ideas.
The claim that a university should not be entitled to patent the inventions of its faculty members plays which one of the following roles in the argument?
(A) It is the conclusion of the argument.
(B) It is a principle from which the conclusion is derived.
(C) It is an explicit assumption.
(D) It is additional but nonessential information in support of one of the premises.
(E) It is a claim that must be demonstrated to be false in order to establish the conclusion.