Correct answer should be E.
Let us take the dimensions for rug as x and y
Statement-01 : perimeter x + y = 44 ; no information about the sides and width of border, so area of rug excluding the border cannot be determined
Statement-02 : area of rug excluding border = (x-2)*(y-2) ; no information about sides of the rug, so area cannot be determined
taking both statements-01 & 02 together, area = (x-2)*(y-2)
this can be any value such as (24-2)*(20-2) =396 Sq Unit for x=24 & y = 20
or area can be (18-2)(26-2) = 384 Sq Unit for x = 18 & y = 26
Therefore not sufficient when taken together