Assumption
A. There are fossilized nondeciduous trees from Antarctica that bear frost rings.
Doesn't matter. Argument is about fossilized trees.
B.Deciduous trees are more likely to bear frost rings than are other tree varieties.
Doesn't matter. Argument is not about comparison of Deciduous trees with other varieties.
C.The process of fossilization does not completely obscure frost rings in deciduous trees.
Yep. This destroys the doubt that rings were present once however obscured due to other reasons.
D.Present-day deciduous trees are more sensitive to changes in temperature than were the deciduous trees of ancient Antarctica.
Doesn't matter. Argument is about fossilized trees.
E.Prolonged and unseasonable frosts that might have occurred in Antarctica when the now-fossilized trees were still living did not always produce frost rings in deciduous trees.
Passage says "Prolonged and unseasonable frosts produce frost rings in deciduous trees, which grow in moderate climates". This options challenges the facts of passage. Hence incorrect.