14. (D)
Question Type: Must Be False
The regulation details the conditions under which food of a type that doesn’t normally contain fat may be labeled "nonfat": 1) most people mistakenly believe it ordinarily contains fat and 2) the label also states that it ordinarily contains no fat. Answer (D) is the only one that violates these rules, because most people are aware, not unaware, that applesauce does not normally contain fat, so, it should not be labeled "nonfat."
(A) doesn’t have to do with something labeled "nonfat." The regulation is about what may be labeled "nonfat," not what must be.
(B) is incorrect for the same reason as (A).
(C) doesn’t have to do with a food that ordinarily has no fat.
(E) gives an example of a food that satisfies both aspects of the regulation.