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Option 3 : Both conclusions I and II follow
The least possible Venn diagram for the given statements is as follows
[ alt="SSC CHSL 10 March 2018 Shift2 D29" src="//storage.googleapis.com/tb-img/production/18/08/SSC_CHSL_10_March_2018_Shift2_D29.PNG" style="height:119px; width:277px">
Conclusion I: Some papers are tabloids → True (Some tabloids are magazines and all magazines are papers)
Conclusion II: Some tabloids are papers → True (Some tabloids are magazines and all magazines are papers)
Hence, both conclusions I and II follow.
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