If the answer is E here, this is not a good question at all. The GMAT is not going to try to 'trick' you in the way this question is trying to. The only reason the answer could be E is if by "double in magnitude" they mean "doubles its distance from zero" (so 3 could become 6 or -6). That's technically what "magnitude" means, but the GMAT is not going to test you on technicalities of mathematical definitions. Almost anyone reading this question would naturally assume we're just doubling each odd number's value, since in any real GMAT problem worded in a similar way, that's what you'd be doing. And if that's what we are doing here, the answer is D -- we can find the sum of the even integers and thus of the odd integers from Statement 1, and thus find the sum of all the values after we double the odd integers. Statement 2 tells us exactly what the odd integers are (they must be the consecutive odd integers from 1 through 31), so we can find their sum, find the sum of the even numbers, and find the sum of the set after we double the odd integers.
But of course if you interpret "magnitude" the way they're intending, the answer is E without requiring any work, since there's no predicting what's in the set after doubling each odd number's "magnitude".
It's a much better (more realistic) question if you simply assume you're doubling each odd number.