This is what (A) says. For further clarification, you can try negating (A) to see how it affects the logic of the argument. What if the most beautiful are NOT the best? Well, then according to the statement above, it's still possible for truth and beauty to be the same thing.
That means that the answer choice is actually a sufficient assumption and not necessary. This question is almost identical to question #17 in section 1 of this test. On both of these questions we have the same type of argument, and on both we had necessary assumption stems with correct answer choices that were sufficient, but not necessary.
When we negate a necessary assumption the argument has absolutely no chance of holding--it's not that the argument can potentially be incorrect, it's that it has NO CHANCE of following. When we negate a sufficient assumption (but not necessary) then the argument doesn't follow, and may not follow, but still has a chance to follow.
This argument CAN ABSOLUTELY FOLLOW without answer choice A. Let's take a look:
IF B = T --> most T = the best
There is absolutely no necessity that we must have B on the other side of the conditional, just like we have truth. If the arguer shows, as he does, that the most truthful/realistic l art does not equal the best (all he needs is one counterexample to prove this, and in fact he has "many"), then the argument follows. If that side of the conditional is negated, the other side is negated, and we're done.
What the correct answer choice does is really add legitimacy to the argument--that it's not just some abstract conditional, but something that actually makes sense. If the best = the most B then we get this:
IF B = T --> most T = most B
Knowing that most T does not equal most B is enough, in any situation, to then say that T does not equal B. That's the heart of this. If one incarnation of A doesn't equal the corresponding incarnation of B, then we can say A doesn't equal B.
This is by no means a typical necessary assumption question. The correct answer isn't necessary in a conditional reasoning sort of way--it's necessary so that the argument goes from something that may be true but doesn't really have backing/legitimacy, to something that absolutely follows and makes a lot of sense.
Perhaps the test makers were trying to come up with a way to test "phrase switching" without testing conditional reasoning.
The nature of this one does in fact match up with other necessary assumption questions where we have to connect a new element in the conclusion with something that came before in the premises--and we have to do that so that the reasoning actually makes sense.
IF B = T --> most T = the best
So yes, again, while it's not necessary to change this formula at all for the argument to be valid from a formal perspective, to actually make sense of things (to add legitimacy to the logic)--to show why "most T= the best" would actually be connected in some way to B=T--we would need something like we get in the answer choice.