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Option 2 : Only I and II follow

The Venn diagram for the given statements is as follows,

[ alt="5b5825211b79bf40b1125df1.1" src="//storage.googleapis.com/tb-img/production/18/12/5b5825211b79bf40b1125df1.1.PNG" style="width: 352px; height: 157px;">

Based on that we will check conclusions:

I. Some Sky being Space is a possibility → Possibility is true as shown below.

[ alt="5b5825211b79bf40b1125df1.2" src="//storage.googleapis.com/tb-img/production/18/12/5b5825211b79bf40b1125df1.2.PNG" style="width: 287px; height: 167px;">

II. Some Blue are Sky → Clearly follow.

III. Some Color being Rocket is a possibility → Not Possible as ‘All Rocket are Space.’ and ‘No Space is Color.’

IV. Some Blue being Rocket, Space, Sky and Color is a possibility → Some Blue being Rocket and Space is possibility but Relation between Blue, Color and Sky is definite so there will be no possibility for them. Hence False

Hence only conclusion I and II follow.
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