For normal users to change their own password, /bin/passwd must have the SUID bit set (permissions should be -rwsr-xr-x). The SUID bit allows users to run the program with the permissions of the file owner (root), which is required to update /etc/shadow. The provided output shows /bin/passwd does not have the SUID bit (no 's' in the owner’s execute field). As a result, user "test" receives an "Authentication token manipulation error". The password can be changed as root, which confirms it's a permissions/SUID issue.

Other options:

B. If the password didn’t meet requirements, a different error would appear.

C. There is no minimum day limit preventing password change (see chage -l output).

D. The account and password are active (not disabled).