The correct answer is: E. No error
The sentence is grammatically correct. The subject “we” agrees with the verb “wanted,” and the object “something” is correctly placed after the verb. The prepositional phrase “in that area” modifies the noun “stores,” and the adverbial clause “were closed on that day” modifies the verb “were.”
The sentence could be improved by adding more detail. For example, we could say “We wanted to purchase some groceries, but all the three stores in that area were closed on that day.” We could also add a reason why the stores were closed, such as “We wanted to purchase some groceries, but all the three stores in that area were closed because of the holiday.”