Final answer:
In the given analogy, a hammer is a type of tool just as a Labrador Retriever is a type of dog. Thus, the correct answer is 'DOG'.
Step-by-step explanation:
The analogy question provided represents a logical reasoning challenge where one must determine the relationship between the first set of terms and apply the same relationship to the second set. A hammer is a type of tool, just as a Labrador Retriever is a type of dog. Therefore, the answer to the analogy is E) DOG, as it properly completes the analogy by showing the relationship of a member to its broader category, similar to TOOL is to HAMMER.