The correct option is E the leisure not to work
"to speak beautifully like a lady in a florist's shop" and "go to Buckingham Palace in a carriage, beautifully dressed"- Higgins says all this in the given passage before saying "If the king finds out you are not a lady..." which implies that all of the preceding phrases are the qualities of a lady. Higgins also says, " If you're naughty and idle, you will sleep in the back kitchen among the black beetles, and be walloped by Mr. Pearce with a broomstick." This last sentence implies that being idle might not be a lady-like quality. Therefore, 'the leisure not to work' is not a characteristic of a lady. Option E is our answer.