These questions test your verbal reasoning skills. This includes your testing vocabulary, a logical approach, your ability to determine patterns within words and your ability to manipulate words.

Verbal - "Compound Words"

(path  step  lollipop)
(girl   lady  mother)

There are nine possible answer combinations:

path girl
path lady
path mother
step girl
step lady
step mother
lollipop girl
lollipop lady
lollipop mother

You can eliminate options 1, 2, 3, 4, 5, 7 and 9 as these do not make words.
There are now two options to choose from:

step mother
lollipop lady

Stepmother is one word, but lollipop lady is two words. Therefore the correct answer is “step” “mother” which is answer options B,E.