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Both Historian and CCM give different reasons for the past glory of Megapolis (public support & vision vs autocracy).

(A) whether Megapolis was once a great city -- Both acknowledge this possibility

(B) what the best explanation is for Megapolis’ past glory -- CORRECT, both have differing opinions on how Megapolis achieved past glory

(C) whether vision and wisdom are important in urban administration -- Present day administration is not mentioned in the passage

(D) whether the administration of Megapolis once had popular support -- CCM does not talk about popular support, so we don't know his or her stance on the same

(E) why Megapolis is no longer a well-run city -- Current state of affairs of Megapolis is not mentioned.

So, B
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Which one of the following best captures what is at issue in the dispute between the historian and the city council member?

(A) whether Megapolis was once a great city Both agree that Megapolis was great at one point [Historian (H): "...That’s how it became a great city", City Council member (CCM): "Megapolis’ past glory was achieved..."]. Eliminate.

(B) what the best explanation is for Megapolis’ past glory Correct answer. H says it is because it was "administered wisely, with vision and with universal public support" while H thinks it is because "power was concentrated in the hands of autocrats and hence more easily exercised".

(C) whether vision and wisdom are important in urban administration There isn't any discussion on whether these are important or not. Eliminate.

(D) whether the administration of Megapolis once had popular support While H states this, CCM does not dispute this. Eliminate.

(E) why Megapolis is no longer a well-run city Neither states anything about the current state of affairs at Megapolis. Eliminate.

Hope this helps.
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