John L. answered 06/03/19
Certified biology teacher specializing in bio and SAT/GRE prep
B is the best answer to that question. Many species can coexist in the same area because they all have at least slightly different niches. An organism's niche is its role in the environment, which includes its habitat, its diet, its predators and prey, its behaviors, etc. If two organisms have the same niche, generally one will out-compete the other, forcing the other to change its niche or leave the area (a principle called competitive exclusion).
A is incorrect because these species are all in the same area so they share a habitat. C is incorrect because ecosystems can support many organisms of the same trophic level (lots of producers, many primary consumers, etc.). When you thought through it, you were overly focused on the coyotes and oats; those were just examples but they were referring to the whole community of organisms in the area.