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Answer: Option 3

Argument I in support does not provide a valid reason for the pursuance of the policy. So, it is vague. Argument II provides a valid reason, as literacy is an essential criteria to take proper decisions on policy matters regarding management of factories. Besides, workers, if involved in management, would surely be motivated to work more devotedly, thus enhancing productivity. So, both II and III follow. IV provides a reason too feeble in the light of facts given in II and III. So, IV also does not hold strong.

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