IMO C...
P1: People who do not believe that others distrust them are confident in their own abilities.
P2: Since this is precisely how people who are confident in their own abilities regard such tasks.
C1: So people who tend to trust others think of a difficult task as a challenge rather than a threat.
Question Stem: The conclusion above follows logically if which one of the following is assumed?
NOTE: This question becomes easier if you rephrase the second premise (P2). In P2, the word "this" refers to "thinking of a difficult task as a challenge rather than a threat". Thus, P2 can be rephrased as "Thinking of a difficult task as a challenge rather than a threat is precisely how people who are confident in their own abilities regard such tasks". Now reorder P2 so it is parallel in structure to P1 and C1. P2 becomes, "People who are confident in their own abilities think of a difficult task as a challenge rather than a threat". Now read the revised P2 along with P1 and C1.
P1: People who do not believe that others distrust them are confident in their own abilities.
P2: People who are confident in their own abilities think of a difficult task as a challenge rather than a threat.
C1: People who tend to trust others think of a difficult task as a challenge rather than a threat.
Now it is easier to see the gap in the argument. The premises and conclusion are not connected. We need to connect "People who tend to trust others" to either "People who are confident in their own abilities" or "People who do not believe that others distrust them".
Between (B) and (C).
(B) "Confidence in one's own abilities gives one confidence in the trustworthiness of others." Incorrect. This answer appears to be correct because it appears to connect "People who are confident in their own abilities" to "People who tend to trust others". This answer is incorrect because it refers to "giving one confidence in the trustworthiness of others". This is not the same as "tending to trust others". Just because I increase my confidence in the trustworthiness of others does not necessarily mean that I tend to trust others.
(C) "People who tend to trust others do not believe that others distrust them." Correct. This answer is correct because it connects "People who tend to trust others" to "People who do not believe that others distrust them". This is exactly what we need. Reread the argument with this answer choice before the first premise. See below.
Ans (C): People who tend to trust others do not believe that others distrust them.
P1: People who do not believe that others distrust them are confident in their own abilities.
P2: People who are confident in their own abilities think of a difficult task as a challenge rather than a threat.
C1: People who tend to trust others think of a difficult task as a challenge rather than a threat.
This is the same as the following:
A then B,
B then C,
C then D,
So, A then D