Concept:
Inverse trigonometric functions possess complementary identities. Specifically, for any value $x \in [-1, 1]$, the sum of the inverse sine and inverse cosine is always a right angle: $\sin^{-1}x + \cos^{-1}x = \frac{\pi}{2}$. Furthermore, the standard identity $\cos(\frac{\pi}{2} + \theta) = -\sin\theta$ is used for simplification.
Step 1: State the given expression.
We are given the trigonometric expression:
$$E = \cos\left(\cos^{-1}\frac{1}{5} + 2\sin^{-1}\frac{1}{5}\right)$$
Step 2: Split the inner term to isolate the complementary pair.
We have $2\sin^{-1}\frac{1}{5}$. We can break this into two separate terms to pair one up with the inverse cosine:
$$E = \cos\left( \left[\cos^{-1}\frac{1}{5} + \sin^{-1}\frac{1}{5}\right] + \sin^{-1}\frac{1}{5} \right)$$
Step 3: Apply the complementary identity.
Using the property $\sin^{-1}x + \cos^{-1}x = \frac{\pi}{2}$, the bracketed portion evaluates to $\frac{\pi}{2}$:
$$E = \cos\left( \frac{\pi}{2} + \sin^{-1}\frac{1}{5} \right)$$
Step 4: Apply the quadrant angle transformation.
Let $\theta = \sin^{-1}\frac{1}{5}$. The expression is now in the form $\cos(\frac{\pi}{2} + \theta)$.
Since adding $90^\circ$ ($\frac{\pi}{2}$) moves the angle into the second quadrant where cosine is negative, the identity is $\cos(\frac{\pi}{2} + \theta) = -\sin\theta$.
$$E = -\sin\left( \sin^{-1}\frac{1}{5} \right)$$
Step 5: Evaluate the inverse function composition.
The sine function and the inverse sine function cancel each other out, $\sin(\sin^{-1}x) = x$:
$$E = -\left(\frac{1}{5}\right)$$
$$E = \frac{-1}{5}$$
Hence the correct answer is (D) $\frac{-1{5}$}.