If p is a prime greater than 3, then p cannot be divisible by 3 (since it's prime). So the remainder will either be 1 or 2 when we divide p by 3. But in either case, when we divide p^2 by 3, the remainder will be 1 -- you can just square the remainders themselves, to get 1 or 4, then take the remainder by 3, to get 1 or 1. So p^2 = 3q + 1 for some integer q, and p^2 + 26 = 3q + 1 + 26 = 3q + 27, which is divisible by 3 and is not prime.
So if the prime p > 3, then p^2 + 26 is never prime. The last thing we need to check is what happens if p is not greater than 3, i.e. if p = 2 or 3. In each case, p^2 + 26 is not prime, so C is the correct answer.
It's not hard to get down to C or E just using process of elimination (plugging in p=5 and 7 gets you there). But to demonstrate that p^2 + 96 can be prime, you actually need to plug in a value for p of at least 19, and when you do that, you have to confirm that 19^2 + 96 = 457 is a prime number, which is a very time-consuming thing to do. The solution above which uses p=11 to eliminate answer E is incorrect, since 11^2 + 96 = 217, and 217 is divisible by 7 and 31, and is not a prime number.