Adlindsey,
I'm sorry for the difficulty. There was an error both in the diagram of the problem (Statement 1 was reversed) and in the explanation for Answer Choice A. I have corrected both.
You are correct that the sufficient condition here is "Guaranteed dorm room," which guarantees "4th year student."
GDR
4YS
The next statement is as above:
4YS & DL
Pick before ~4YS
Thus we have conclusive evidence for answer choice D.
Notice the particular syntax "the only" which precedes the sufficient condition. In the absence of "the," "only" generally introduces a necessary condition. Compare the following statements:
"The only students guaranteed dorm rooms are fourth year students."
vs
"Only fourth year students are guaranteed dorm rooms."
vs
"You're only guaranteed a dorm room if you're a fourth year student."
All three are logically equivalent (In the last example "only ... if" is technically a "phrasal conjunction" in which "only" has been separated from but should be understood together with "if," i.e. "You're guaranteed a dorm room only if you're a fourth year student."). Fun syntax, dude! Thank you for spotting that mistake. Well done.