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Option 3 : Both conclusions follow.

The least possible Venn Diagram for the given statements will be as follows,

[ src="//storage.googleapis.com/tb-img/production/20/05/Syllogism_Ishita_Shah_11May20_10Q_A%207.PNG" style="width: 130px; height: 112px;">

I. Some villages are huts → True,  As all huts are houses and all houses are villages, some villages are definitely huts. Hence, true.

II. All huts are villages → True,  As all huts are houses and all houses are villages. Thus, all huts are villages. Hence, true.

Hence, ‘Both conclusions follow’ is the correct answer.

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