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Option 1 : Only conclusion III follows

I. Examination is related to only hard work. → False (Hard work is the only thing to pass cannot be concluded from the statement)

II. All those who do not work hard pass. → False (It is clearly stated in the statement one must work hard to pass)

III. Without hard work, one does not pass. → True (It is concluded from the statement)

IV. Hard-working person is a satisfied person. → False (It can be true but it cannot be concluded from the statement)

Hence, only conclusion III follows.
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