There is an error in the explanation.
Statement (1) INSUFFICIENT: We learn from this statement that either p or q is negative, but since we know from the question that p < q, p must be negative. To determine whether pqr < p, let's test values for p, q, and r. Our test values must meet only 2 conditions: p must be negative and q must be positive.
Test values above should also meet the condition p<r but the test values use r<p.