This is a necessary assumption question as indicated by the question stem. We're required to find an assumption that is necessary in order for the argument presented in the stimulus to hold. Once we've found that assumption within the answer choices, we can negate that assumption to see if it weakens the conclusion. If it does, then that's the correct answer choice.
Core of the Argument:
teachers increased amt. of individual time with student to help engage student in learning process --> average grades of students remained unchanged ---> students do not become more engaged in the learning process
Gap: Relationship between a student's grades and their engagement in the learning process
What MUST BE TRUE in order for the conclusion to hold?
D) states this nicely. "Degree of of student engagement in the learning process correlates well with students' average grades."
If we negate that then we get "degree of student engagement in the learning process DOES NOT correlated well with students' average grades."
If it DOES NOT correlate, then the conclusion that students do not become more engaged in the learning process as evidenced by their grades cannot hold.