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Option 3 : Only conclusion I and III follows.

On drawing a Venn diagram of given statements, 

[ alt="22Nov1" src="//storage.googleapis.com/tb-img/production/18/11/22Nov1.PNG" style="width: 156px; height: 116px;">

I. Some Pens are erasers. ⇒ True (as it is shown in above Venn diagram)

II. No pens are erasers. ⇒ False (as pens which are pencils are erasers)

III. Some erasers are pencils. ⇒ True (as it is shown in above Venn diagram) 

Therefore, only conclusion I and III follow.

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