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Option 3 : Neither conclusion (I) nor conclusion (II) follows.

We draw the least possible Venn diagram:

[ alt="11aUGsHIFT1 1 AJAY 1" src="//storage.googleapis.com/tb-img/production/18/06/11aUGsHIFT1_1_AJAY_1.PNG" style="height:127px; width:302px">

Conclusions:

I. Some bags are red → It’s false. II. All bags are red → It’s false

Hence, neither conclusion I nor II follows.

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