Two statements are given, followed by three conclusions numbered I, II, and III. Assuming the statements to be true, even if they seem to be at variance with commonly known facts, decide which of the conclusions logically follow(s) from the statements.
Statements:
Some caps are shirts.
Some shirts are coats .
Conclusions:
I. No coat is cap.
II. No coat is shirt.
III. Some coats are caps.

Conclusion: I. No coat is cap.

There is not any negative relationship given between 'coat' and 'cap'. So the given conclusion does not follow.

Conclusion: II. No coat is shirt.

'Some coat is shirt.' is given in the statement. So the given conclusion is not possible. 

Conclusion: III. Some coats are caps.

There is not any direct relationship between 'coats' and 'caps'. So the given conclusion does not follow.

But here conclusions I and III are making an either-or case where at a time one conclusion is possible.

Hence option (c) is the correct answer.