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I will go with 'B'
since the composition is not same as 'imitation butter', there is a difference between imitation butter & lite butter, something similar to 1% reduced milk, 2% reduced milk & fat free milk.
The argument says that people should be encouraged to eat low fat products. Since imitation butter deters those people from eating imitation butter the argument assumes that people are not being encouraged to eat healthy.
Whereas (E) brings in a possibility where people who are deterd are eating much more healthier food. Thus there is no need to change the name to lite butter anyway.
(A) comes close but it does not matter what intention the manufacturers have as long as people are benefited.
I thought 'E' was supporting the argument because people who would have bought 'imitation butter' are buying something else and hence changing the name to lite butter would help these people to buy 'lite butter'.
I agree it should be E. The argument says that people should be encouraged to eat product with less butterfat content, and that imitate butter has less butterfat so should be allowed to change its name to lite butter so that people are encouraged to buy it. However, E says the people who choose not to buy them actually are buying foods that have even less butterfat content. In other words if they are now encouraged to buy imitate butter they would be eating foods with higher butterfat content then they are now.