Of these options, the best choice is Option B. In fact, Diamond says almost this exact thing in Chapter 8 (and again in Chapter 15). This is on pages 148 to 150 in the paperback edition of the book. On page 149, Diamond tells us that
New Guinea highland farmer populations suffer from severe protein limitation, because the staple crops that provide most of their calories … are low in protein.
He also says, on p. 148, that New Guinea had “no domesticable large mammal species whatsoever.”
This clearly shows us that Option B is the best choice.
Option A is clearly not true. On p. 148, Diamond says that there were no cereal crops domesticated in New Guinea. He says that this is because none of the 56 kinds of grass in the world with the biggest seeds is native to New Guinea. This makes A false.
Option C is clearly not true. There were many people living in the highlands of New Guinea. Diamond talks about these populations, as in the quote above.
Finally, Option D is not true. Diamond notes on p. 149 that New Guineans eagerly used the sweet potato when it was introduced from the Philippines. This cause a population boom in the highlands since sweet potatoes have much more protein than native New Guinean crops do.
Therefore, B is the best choice. Because New Guinea had plants that were low in protein and no animals to help provide more protein, it was not possible for it to sustain the large populations needed for technological and political advancement.