You don't need to understand what "ripped" means to answer the question correctly, and you were probably not expected to know in the reading comprehension task.
By process of elimination:
they admired my rental car and said that they thought rental cars broke easily and that they each wanted to get one
NO: if this was the case it would be had thoughthad thought - until they saw my rental car.
they admired my rental car and said that they thought rental cars were appealing
OK - it makes sense, what they said demonstrates their admiration.
they admired my rental car and said that they were surprised that rental cars were new
NO: to "totally" rip = to be unexpectedly new?to "totally" rip = to be unexpectedly new? Highly unlikely because of the strong adverb.
they admired my rental car and said that they determined rental cars were ugly
NO: "We like your rental car and we have reached the conclusion that rental cars are ugly" - this would only make sense if they especially admire ugly things - unlikely.
