This question gave me a very hard time. I got it right, but it was a bare knuckle fight between D and E. Here are my thoughts:
(A) This is too narrow, and it's also not what the passage says. The last paragraph of the passage talks about a long standing assumption where parasitic interactions eventually evolve towards symbiosis. We can infer from this that the old assumption holds they can also be symbiotic. So answer choice A doesn't even address what the final paragraph is actually saying.
(B) Check out lines 38 - 44. It seems to refute this answer choice by suggesting they are not necessarily a distinct species.
(C) They are actually closely related to fungus not algae.
(D) This is right. I chose it during timed and untimed practice before checking my answers. It's not ideal. I really wanted this answer choice to have additional info on the implications of the research mentioned in the final paragraphs. It didn't have that info. It's questions like this that make me roll my eyes at the LSAT. =)
(E) "By means of their common evolutionary origins" is why I got rid of this. The explanation is revealed by the new DNA study that has been conducted, and the common evolutionary origins are also revealed from the DNA research.