The questions says lx-yl > lx-zl
Until unless we know the exact value or signs (+ or -) of x and z or x and y we cannot answer this question.
Statement I.
xyz<0
x could be on the left of number line
y could be on the left of number line
z could be on the left of number line
or x could be positive, y could be positive and z negative
Therefore insufficient.
Statement II.
xy<0
x could be positive, y could be negative or vice versa.
it does not tell us anything about z
Therefore insufficient.
Combining Statement I & II
xy<0 & xyz<0
x is positive y negative and z positive.
x negative y positive and z negative.
Insufficient.
Hence E.