There is nothing ambiguous about the question, and I've seen questions with a similar type of logic on the real test. Let's look at a simpler question:
If 0 < x < 10, what must be true?
I) x > 5
II) x > -5
III) 2 < x < 10
The answer here is II) only. The question does *not* ask "which of the following gives all possible values of x, and only those values?" It only asks "what must be true?". If we know that x is greater than 0, we can be absolutely certain that x is greater than -5.
The same is true in the question in the original post, above. From the inequality given, X/|X| < X, we can determine that X is either between -1 and 0 or X is greater than 1. Well, regardless, X is certainly greater than -1; that must be true. It isn't important that X can't be equal to 0.5. What is important is that the only possible solutions for X are all larger than -1.
Even if we had been given different information and had reached the conclusion that X = 18, we'd still know that it must be true that X > -1, since 18 is greater than -1.
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