Any point that is located above and to the right of an indifference curve provides a higher level of consumption of each good than the points on that indifference curve. Because of this, point V provides a higher level of utility than the points on the indifference curve. Thus, point V would be preferred to either point II, III or IV. The point that lies below and to the left of the indifference curve (point I), however, provides a lower level of utility. The correct answer is E.