If I ask the question:
x is an even integer. What is the value of x?
A) 1
B) 2
C) 3
D) 5
E) cannot be determined
it should be clear that the answer is E here; we don't have enough information to find the value of x. The same thing is true about the question in the original post. When you know the remainder when x is divided by 13 and by 17, the possible values of x will be separated by the LCM of 13 and 17, which is 221. That is, there will be an infinite number of possible values of x here, and these values will be 221 apart. So yes, it's possible that x = 349, but it's equally possible that x = 349 - 221 = 128, or that x = 349 + 221 = 570, or that x = 570 + 221 = 791, among many other possibilities.
I'd add that the question is poorly presented (the GMAT would never have an answer choice which read "data inadequate", for one thing), which I imagine has contributed to some of the confusion about the correct answer.
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