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  1. Only I follows
  2. Only II follows
  3. Both I and II follow
  4. Neither I nor II follows
  5. Either I or II follows
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Option 5 : Either I or II follows

Clearly, since ABC Bank requires the additional guarantee, XYZ Ltd is left with two options

1. They should furnish the required guarantee to ABC Bank (Course of Action I) OR

2. They should look for some other bank which does not require the additional guarantee and apply there (Course of Action II)

Hence, Either I or II follows.

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