What is the in-flight visibility requirement for VFR-on-Top operations in Class E airspace during daylight?

The in-flight visibility requirement for VFR-on-Top operations in Class E airspace during daylight is indeed 5 miles visibility, with the cloud clearance requirements set at 1,000 feet above the clouds, 1 statute mile horizontally from the clouds, and 1,000 feet below the clouds. This standard is designed to ensure that pilots maintain a safe distance from clouds while providing them with adequate visibility to navigate and see other aircraft.

During VFR-on-Top operations, pilots operate under VFR rules while flying above a layer of clouds, which allows them to navigate visually while complying with specific requirements to ensure safety. The requirement of 1,000 feet above the clouds is crucial for preventing encounters with other aircraft that may be operating within the clouds, while 1 mile horizontally and 1,000 feet below the clouds help maintain separation from other traffic and minimize the risk of collisions.

The other answer choices differ in the visibility and clearance requirements specified. Hence, those specific standards are not applicable for VFR-on-Top operations in Class E airspace.