Critical Reasoning

Background information: This year, each film submitted to the Barbizon Film Festival was submitted in one of ten categories. For each category, there was a panel that decided which submitted films to accept.

Fact 1: Within each category, the rate of acceptance for domestic films was the same as that for foreign films.
Fact 2: The overall rate of acceptance of domestic films was significantly higher than that of foreign films.

In light of the background information, which of the following, if true, can account for fact 1 and fact 2 both being true of the submissions to this year's Barbizon Film Festival?

A. In each category, the selection panel was composed of filmmakers, and some selection panels included no foreign filmmakers.

B. Significantly more domestic films than foreign films were submitted to the festival.

C. In each of the past three years, the overall acceptance rate was higher for foreign than for domestic films, an outcome that had upset some domestic filmmakers.

D. The number of films to be selected in each category was predetermined, but in no category was it required that the acceptance rate of foreign films should equal that of domestic films.

E. Most foreign films, unlike most domestic films, were submitted in categories with high prestige, but with correspondingly low rates of acceptance.

The OA is E.

I am confuse here. How can I determine the correct answer?

Don't confuse between acceptance rate and number of movie accepted.

Consider acceptance rate value in percent.

If fact 1 and fact 2 were true, then acceptance rate of foreign movies would be lesser than acceptance rate of domestic movies.

If number of foreign movies equal to number of domestic movies, then fact 2 cannot be be true.
In order to make fact 1 and fact 2 true, we have to assume that more number of foreign movies are submitted, and only less movies are accepted. This is what Option E says.