The reason why Q2 is E is as follows:
"...conquered high (by these countries' standards) inflation..." means that USA and Europe had high inflation according to their own standard. The primary reason why the comment in the parenthesis is mentioned is to compare the rates with those of other countries, where inflation rates maybe so high that these other countries don't find USA's and Europe's rate to be that high.
By USA's and Europe's own standards, the inflation maybe high, but by
...
"...conquered high (by these countries' standards) inflation..." means that USA and Europe had high inflation according to their own standard. The primary reason why the comment in the parenthesis is mentioned is to compare the rates with those of other countries, where inflation rates maybe so high that these other countries don't find USA's and Europe's rate to be that high.
By USA's and Europe's own standards, the inflation maybe high, but by
...
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