Hi !
This is a classic value based DS question where I have an advantage to
NOT solve but simply reason it out without any cumbersome calculation

I need a unique answer for the "area of the shaded region" which is the area between the two circles.
If I knew the area of the larger circle and the smaller circle, I would simply subtract to get to the answer.
Iam sure I dont have that here

and so Iam going to look for the sufficiency of the statement(s) on providing me the radiuses of the two circles. Do I have that?
In any question of circles, I first try to find or establish the centre , move to the radiuses, fill in the data, locate any isosceles or equilateral triangles & finally operate.
I will start with statement 2 since its an easy kill.
It provides Angle x is 45°.
How do I know its the central angle? Where is the radius?
I have no value around area of the circles or anything that leads me to the radius. Insufficient. Eliminate B,D and we are down to 3 options.
In statement 1, we are given "The difference in radius between the inner circle and the outer circle is 5."
Hmm, If the larger circle has radius R and the smaller has r, I am provided with R-r.
I need π(\(R^2\)-\( r^2\)).
Can I compute R+r with only R-r ?? Not without the product Rr. If the product was provided,I could have thought of \((R+r)^2\)-\((R-r)^2\)=4Rr and would have tried to figure out R+r from there.
Can i compute R+r from the figure? Nopes.
Insufficient. Eliminate A. Its either C or E.
Now, what do I have if I combine?
A statement that doesn't provide me R+r and another that gives me some angle within the circle without leading me to R or r in any which ways.
No definite answer when I combine. Eliminate C.
Correct answer E.
Here is an official hard question I explained on circles. I think this could help the reader apply the visual skills better once they have analysed the question you have posted here.
Devmitra Sen
GMAT Mentor