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Option 2 : Only Argument II is strong.
Though every citizen has the right to life, the Government cannot provide for such a large number of people. It is not possible as the Government does not have enough resources and if the Government decides to do so, it will have to raise taxes and the money would come out of the pockets of the common people. But as suggested in Argument II, building homeless shelters would not require that many resources and it would serve the same purpose. We can conclude that the Government should not provide housing facilities to the homeless but should build homeless shelters. Therefore, 2 is the right option.
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