From the original, we know that 40 animals are either pigs or cows, or 40 = p + c
(2): clearly insufficient.
(1) "The farm has more than twice as many cows as it has pigs" means:
c>2p
(@kstv, I think you read (1) as "the farm has twice as many cows as it has pigs"!)
Insufficient.
Combined, we know that:
c and p are positive integers;
(I) c+p = 40;
(II) c>2p; and
(III) p>12
(we also know that c>p+12 but that doesn't matter).
(III) tells us p>12. Say p is 13. From (I), c would then be 27. Checking against (II), is 27>2*13? Yes. So, p = 13, and c = 27 is one solution set, but just barely. As you can see, if we were to increase p to 14, then from (I), c would have to be 26 but since 26 is not > 2*14, (II) would then be breached.
Thus, p is 13, and c is 27.
Choose C.
Kaplan Teacher in Toronto