Hi!
Happy to address this question. Absent knowing a particular answer choice that seemed tempting, I'll just focus on explaining the correct answer.
Answer choice (C) states, "A bookstore that profitably sells books at below-market prices gets discounts from publishers."
We know this is true from one of the statements we are given in the passage. Namely, we are told that "The only way that bookstores can profitably sell books at below-market prices is to get the books at a discount from publishers," or:
sell profitably at below-market price
discount from publishers
This is what answer choice (C) reflects. We know that if a bookstore is profitably selling at below-market prices, then it must be getting discounts from publishers. The words "only way" seem critical to diagramming this sentence, which indicate (much like the words "only if") a necessary condition is going to follow those words.
Hope that helps!