E: They are your father's friend's shoes.
1.you can't choose A because "shoes" are plural and the answer used "it's" which is singular
2. if B did not have the "s" in "hers" it would be correct but the addition of s made it incorrect
2. C makes no sense (the use of "their" is not in the right place)
3.D again the use of words is not the correct one (their)
that leaves us to E , which is the correct answer.