We need to find the flaw in this argument. The conclusion is that implementing a certain recommendation would cause the company to violate its policy of not exploiting workers. Why? Because the person putting forth the recommendation states that it'll help the company "by fully exploiting" the available resources.
As (A) notes, the word "exploiting" is being used in two different ways here (she's using it to mean "use" and the director is using it to mean "take advantage of").
(B) is out of scope - nobody is defending any action.
(C) is tempting in that it's confusing and it refers to a word's use. There's no example given in this argument, and the problem with a term's definition is not that an odd use of the word is employed, it's that two uses of the word are used.
(D) is not true! The conclusion doesn't show up as a premise.
(E) is perhaps tempting since it refers to a problem with terminology, however we have no idea which use of "exploit" is more offensive, and even if we did, whether one is more offensive than another is irrelevant.