When the question is 'either language or lit', that means the union (either or both)
I'm pretty sure if it wanted the chance of either but not both, it would say so eg 'language or lit but not both'
If you study language, you fit into the category 'either language or lit'
If you study lit, you fit into the category 'either language or lit'
If you study both, you also fit into the category 'either language or lit'
If you study both, however, you would NOT fall into the category 'either language or lit but not both'
I understand the confusion that arises, why doesn't 'EITHER language OR lit' imply that the person does not study both? I'm pretty sure that the way myself and the others have explained the terminology is correct, though.