Notice that the only four ways such that $3$ draws are required are $1,2$; $1,3$; $2,1$; and $3,1$. Notice that each of those cases has a $\frac{1}{5} \cdot \frac{1}{4}$ chance, so the answer is $\frac{1}{5} \cdot \frac{1}{4} \cdot 4 = \frac{1}{5}$, or $\boxed{D}$.
Jonathan Xu (pi_is_delicious_69420)
A box contains $5$ chips, numbered $1$, $2$, $3$, $4$, and $5$. Chips are drawn randomly one at a time without replacement until the sum of the values drawn exceeds $4$. What is the probability that $3$ draws are required?
$\textbf{(A)} \frac{1}{15} \qquad \textbf{(B)} \frac{1}{10} \qquad \textbf{(C)} \frac{1}{6} \qquad \textbf{(D)} \frac{1}{5} \qquad \textbf{(E)} \frac{1}{4}$