The solution provided by Ian is perfect and very informative, but I guess many test takers go to the exam without this knowledge... that´s why I believe the solution I present below is also nice:
From the "a, b, c, d and e are non-negative integers" hypothesis, I believe the question should be "seen" as:
2^(a-c) * 3^(b-d) over 5^e is a terminating decimal ?
Important: this is just a visually helpful thing, because (for instance) the value of (a-c) may be negative, and that means that 2^(a-c) can be at the denominator, "in reality"...
(1) This sttm tells us that 2 is really in numerator, but what about the 3(´s) ?
> Take a = 2, c =1 (to be only 2^1) and b = 2 and d = 1 (to let 3 be 3^1, so numerator...) and e = 1 , then we have: (2 * 3) over 5, and if you multiply both numerator and denumerator by 2 , you get (2^2 * 3) over... 10, that is, certainly terminating because it is an integer divided by 10, so you just move decimal point, you do not "alter terminallity"...
> Take a =2 , c = 1 (to be only 2^1 again) and b = 1 and d = 2 (to let 3 be 3^(-1), so denumerator) and e =1 , then we have: 2 over (3 times 5) and now we know we are with a non-terminating decimal because of this (for instance):
2/(15) = 2*2 / (15*2) = 4/30 = (1/10) * (4/3) and divide by 10 does not alter the "terminallity of a certain decimal" (as mentioned above) and we know that 4/3 is not terminating, because it is equal to 1+ 1/3 and (1 is an integer and) 1/3 is non-terminating, for sure (0.333333...)
Obs.: this is not stupid calculations, I believe. This is the "insight" that is behind Ian´s statements...
(2) Now we know that 3´s are on the numerator, therefore we may have only 2´s , only 5´s or both in the denumerator. From all shown, you should be able to recognize that 2´s and 5´s are no problem, because multiplying by 10´s in enough quantity you turn the fractions into integers, therefore terminating decimals.
This one DECIDES affirmatively on the question asked, that is, (2) is sufficient.
Regards,
Fabio.