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Option 4 : Both I and III follow

The least possible Venn diagram for the given statements is as follows,

[ alt="18.09.2018.001001" src="//storage.googleapis.com/tb-img/production/18/09/18.09.2018.001001.PNG" style="height:124px; width:146px">

Conclusions:

I. All pens are pencils → True (as shown in the diagram)

II. All pencils are pens → False (it is possible but not definite)

III. At least some pencils are red → True (as shown in the diagram)

Therefore, both conclusions I and III follow.

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