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"not a problem in well-ventilated house but it is in well-insulated house" implies that a well-insulated house is not a well-ventilated house, hence D, correct? I picked E because I mistakenly read the well-ventilated as well-insulated in that a well-insulated house with a houseplant would have fewer toxins in the air than a well-insulated house without houseplants.
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(E) also assumes that all other things remain equal -- that is, that the houses under consideration indeed include the types of cleaning fluids, synthetic carpets, and wall paneling under consideration.