Concept:  The question tests on application of Combination

Solution:

We can start with either the arts or the science students.

Suppose we start with the arts students. 4 students can sit around a table in (4 - 1)! = 3! = 6 ways

The remaining 4 students can be seated in 4! ways = 24 ways (This is because, they have reference points provided by the 4 arts students already seated)

Therefore the total number of ways = 6 * 24 = 144 ways

 Option E