If Z is selected, we know we don’t have M and W:
We don’t know anything about H, because Z and H aren’t connected by an arrow.
This deduction disproves A-C. M, a sapphire, can’t be included.
D can’t be true. If Z is in, we can have, at maximum, three topazes and two sapphires. That only make five gems.
So we need rubies to make six gems.
E is CORRECT. This scenario shows how we could have no sapphires:
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