Answer:
The correct answer is (E).
Remember that we must first locate the argument clearly for the type Identifying an Assumption of an Argument. Earlier, we stated that the argument almost always consists of the first and the last sentence, where the first sentence is a claim, and the previous sentence is a conclusion (or the argument) drawn based on the claim. However, in the passage above, we will form the argument's logic based on allegations made in the first three sentences. Therefore, reread each sentence and attend to the claim it makes in its barest form:
Sentence 1: Citizens want TV License abolished.
Sentence 2: The entire cost of Public TV comes from the TV License.
Sentence 3: Citizens will save Public TV.
Sentence 4: Argument: The entire revenue for Public TV will have to be paid for by taxes. (Pay close attention to this argument, which is also the most complex sentence: The assumption here is that no money from any other source will help maintain Public TV).
Now, you are being asked to identify an assumption of the argument. That is, what has the author of the passage assumed to arrive at his conclusion that the entire revenue for Public TV must come from taxes. Go through each answer choice and examine it against the conclusion. It is E: The money saved by not having to collect the TV license fee would not be available to pay part of the cost of maintaining public TV broadcasting. We had already observed above that no money from any other source will help keep Public TV.
Therefore, the correct answer is E.