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Option 1 : Only I follows
Consider the following least possible Venn diagram,
[ alt="RRB OA Sanchit MFT1 20 July 2018 hindi hrev images Q16" src="//storage.googleapis.com/tb-img/production/18/08/RRB_OA_Sanchit_MFT1_20%20July%202018_hindi_hrev_images_Q16.PNG" style="height:74px; width:204px">
Conclusions:
I. Some pencils being books is a possibility → True (Possibility is true as shown below)
[ alt="RRB OA Sanchit MFT1 20 July 2018 hindi hrev images Q16a" src="//storage.googleapis.com/tb-img/production/18/08/RRB_OA_Sanchit_MFT1_20%20July%202018_hindi_hrev_images_Q16a.PNG" style="height:131px; width:139px">
II. All books are pencils → False (It is possible but not definite)
Hence, the only conclusion I follows.
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