The correct option is E If the inference is 'definitely false', i.e. it cannot possibly be drawn from the facts given or it contradicts the given facts
"And this co-existence of grain surpluses with large-scale hunger should make any serious policy-maker think and examine the existing policy mix with a view to ensure faster economic growth and reduction in poverty." - from this final statement of the passage, it is clear that the policy-makers are not unaware of the prevalent hunger. Thus the given inference is definitely false. D is the answer.