The area inside the larger circle but outside the smaller circle = larger circle - smaller circle.
Question rephrased: What is the area of each circle?
Statement 1: AB=3 and BC=2.
Radius of the smaller circle = AB = 3.
Radius of the larger circle = AC = 3+2 = 5.
Thus, we can determine the area of each circle.
SUFFICIENT.
Statement 2: CD=1 and DE=4.
Radius of the larger circle = CE = 1+4 = 5.
Since C is the center of the larger circle, AC = CE = 5.
Thus, the diameter of the smaller circle = AC+CD = 5+1 = 6.
Thus, we can determine the area of each circle.
SUFFICIENT.
The correct answer is
D.
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