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Option 3 : Both I and III follow
Consider the following least possible Venn diagram,
[ alt="RRB OA MFT7 Neha 9 Aug 2018 40q hrev images Q34" src="//storage.googleapis.com/tb-img/production/18/08/RRB_OA_MFT7_Neha_9%20Aug%202018_40q_hrev_images_Q34.PNG" style="height:143px; width:320px">
Conclusions:
I. Some Circle are Box → True.
II. No Box is a Square → False (It is not possible as some box are square).
III. Some Square being a Bag is a possibility → True (It is possible so the possibility is true).
Hence, conclusions I and III follow.
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