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Option 1 : Only I follows
Consider the following least possible Venn diagram,
[ alt="Assignment D12" src="//storage.googleapis.com/tb-img/production/19/05/Assignment_D12.PNG" style="width: 245px; height: 174px;">
Conclusions:
I. Some Cap are Red → True (As all jacket are cap and some jacket are red, so the part of cap which is jacket is red also).
II. No Balloon is Jacket → False (It is possible but not definite, as no direct relation between the two is given).
III. No Cap is Balloon → False (It is possible but not definite, as no direct relation between the two is given).
Hence, Only conclusion I follows.
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