The sentence simply means this: The quotation that made the mayor
seem like he thought police services should be cut was _______: it completely
_______ the mayor’s desire to hire more police. So the first blank
describes the quotation: it should be misleading. The second blank
is a verb that should mean contradicted because the quotation casts the
mayor in a false light. Spurious means false (so the quotation was false),
and misrepresentended means casting someone in a false light.
(E)