Chris/LSAT Enthusiast's explanation is good for explaining the logical justification behind the credited answer choice, it gets right to the point of why (E) must be true based on the premises in the stimulus.
I'm going to expand because this problem is a good one for LSAT instructional purposes about dealing with formal logic premises, combining them, and differentiating valid versus invalid conclusions from the various available transitive combinations.
Forgive me if this is overkill/overly complicated for just solving the problem itself. Here goes...
As with most must be true questions, the stimulus is just a set of facts rather than an argument and your job is to find the answer choice that states a valid conclusion that can be logically concluded from the offered facts/premises.
Given the set of conditional/formal logic premises presented here and the number of available valid conclusions that can be drawn from combining them, it is impossible to pre-phrase or anticipate which valid conclusion to specifically look for in the answer choices before reviewing them. There are several other available valid conclusions that MUST BE TRUE which LSAC could have instead included as the credited answer choice.
Breakdown of the question: PrepTest #43, June 2004 #17 LR section #1
Abbreviation of the conditional elements:
SC = small countires
SH = southern hemisphere
PUNC = permanent seat on UN security council
IPC = in favor of increased peace keeping efforts
GRMD = greater role in moderating regional disputes
$R = in favor of increased spending on refugees (in the negated form
~$R = against increased spending)
Premises presented in the stimulus:
SC
OR SH
~PUNC
contrapositive: PUNC
~SC
AND ~SH
PUNC

IPC
AND GRMD
contrapositive:
~IPC
OR ~GRMD
~PUNC
IPC
~$R
If you accurately diagrammed all three premises before heading to the answer choices you should recognize that they share several common elements and can be put together with the transitive property.
PUNC

IPC
AND GRMD
AND ~SH
AND ~SC
along with: PUNC

IPC
~$R
Now that is a fairly complex and confusing set of conditional combinations.
The reduced (diagram excludes the elements the answer choice does not talk about/need/depend upon) combination of them that proves answer choice (E) MUST BE TRUE is the contrapositive of the 1st premise and the original form of the second premise:
PUNC

GRMD
AND ~SH
With this problem could you have anticipated that as what to look for in the answer choices after diagramming the stimulus, inspecting for valid transitive links and before spot checking the answers?
NOOOOooooooo!

Since all PUNC are GRMD and
~SH , there will be a

overlap between those two necessary conditions that must be true.
Since countries that are PUNC exist ('Each of the 5 countries...' -second sentence of stimulus-), every country in that group shares those two necessary conditions, therefore it must be true that:
GRMD
~SH and you have proven that (E) MUST BE TRUE!
Even though the CR does not mention countries that have a permanent seat on the UN security council, you need to analyze from PUNC and know what logically follows about countries that have a PUNC to get it and be certain about the credited answer.
However, there are several other available MUST BE TRUE transitive conclusions that follow logically from the premises that could instead have been listed as the correct answer.
IPC

GRMD
IPC
~SH
~SC
~SH
~SC

GRMD
~SC

IPC
This question could have been even nastier if LSAC had decided to make it a MUST BE TRUE
EXCEPT question since there are more than four MBT conclusions that the premises in the stimulus prove to be logically correct.
(If I was the LSAC question writer behind this one and was having a bad day and in a bad mood at the time I might very well have advocated to make it a MBT Except question!)