Actually, I would agree with B. According to the South-Western Federal Taxation textbook:

"Lobbying expenses incurred in attempting to influence state or Federal legislation or the actions of certain high-ranking public officials (e.g., the President, Vice President, cabinet-level officials, and the two most senior officials in each agency of the executive branch) are not deductible. The disallowance also applies to a pro rata portion of the membership dues of trade associations and other groups that are used for lobbying activities.

There are three exceptions to the disallowance of lobbying expenses. An exception is provided for influencing local legislation (ex. city and county governments). Second, the disallowance provision does not apply to activities devoted solely to monitoring legislation. Third, a de minimis exception is provided for annual in-house expenditures (lobbying expenses other than those paid to professional lobbyists or any portion of dues used by associations for lobbying) if such expenditures do not exceed $2,000. If the in-house expenditures exceed $2,000, none of the in-house expenditures can be deducted."

Since E/M chose B but not D, D might be allowed thru the first exception, which allows expenses incurred to influence local legislation. B is disallowed 100% because it is to influence Congress, not local governments.