how to choose between “three five-dollar notes” and "three five dollars' notes"

I don't know if this is the right answer but some grammarians believe that objects cannot own things (so dollars cannot own notes). Exceptions are some vehicles (ships, airplanes) and time: an hour's notice. See the blue box at:

http://grammar.ccc.commnet.edu/grammar/possessives.htm

One five dollar note.

Three five dollar notes.

I may be wrong, but I believe that Americans also tend to call the notes 'bills'.

As Lordy noted,
A five dollar note or bill is singular.
So you must choose D, the only answer that is not plural.

"I have three five-dollar notes" is correct. "Five-dollar" is a noun phrase used attributively as an adjective, modifying "notes." Thus, it must be hyphenated to avoid possible confusion. "I have three five dollars' notes," on the other hand, is incorrect. The possessive implies that the dollars own the notes, and that these dollars are named "three five."

Thank you very much!