Data Sufficiency

VJesus12 wrote:In a certain coding scheme, each word is encoded by replacing each letter in the word with another letter. The same code is used for all words, so that the same letter replaces a given letter each time the given letter occurs. What code will result when the word TAME is encoded by this scheme?

(1) When the word MAT is encoded, the result is DLX.
(2) When the word TEA is encoded, the result is XRL.

Question stem, rephrased:
How are the four letters T, A, M and E encoded?

Statement 1:
Since MAT is encoded as DLX, we get the following chart:
ACTUAL LETTER --> ENCODED LETTER
M --> D
A --> L
T --> X
No information about the how to encode the letter E.
INSUFFICIENT.

Statement 2:
Since TEA is encoded as XRL, we get the following chart:
ACTUAL LETTER --> ENCODED LETTER
T --> X
E --> R
A --> L
No information about the how to encode the letter M.
INSUFFICIENT.

Statements combined:
The following chart is yielded:
ACTUAL LETTER --> ENCODED LETTER
T --> X
A --> L
M --> D
E --> R
Thus, TAME is encoded as XLDR.
SUFFICIENT.

The correct answer is C.