We need x^3y<0
and y/z>0.
For x^3y<0 we need either
x<0 and y>0 or
x>0 and y<0.
For y/z>0 we need either
y and z positive or
y and z negative.
We need both x^3y<0
and y/z>0 so we need to combine our requirements above, like so:
x^3y<0
and y/z>0
if x<0, y>0 and z>0 (let's call it scenario 1, or s1)
or x>0, y<0 and z<0 (scenario 2, s2)
Let's take a look at the possible answers. We are first confused with the "less than 1" part of the question, but in our requirements we have only found whether x, y and z are positive or negative, so we are possibly looking at "positive or negative" results.
A. In s1, this is negative, but is positive in s2.
Inconclusive.
B. Denominator is always positive, so it depends on the sign of y, which depends on the scenario.
Inconclusive.
C. z^4 is always positive so it depends on the sign of x, which depends on the scenario.
Inconclusive.
D. x^2 is always positive so it depends on the signs of y and z. y and z must both be positive (s1) or both negative (s2), which means that yz is always positive.
Not our answer.
E. y^2 is positive. It will depend on the signs of x and z. In s1, x>0 and z<0. In s2, x<0 and z>0. This means that in both scenarios, xz is negative. xy^2z^3 is always negative (and also less than 1) so
this is our answer.
ANSWER E