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In the question three statements are given, followed by three conclusions, I, II and III. You have to consider the statements to be true even if it seems to be at variance from commonly known facts. You have to decide which of the given conclusions, if any, follows from the given statements.
Statement I: All cotton is cloth
Statement II: All cotton is shirts
Statement III: Some cotton is woven
Conclusion I: Some woven is shirts
Conclusion II: Some cloth is woven
Conclusion III: All cloth is shirts
The basic diagram for the given statements is
I. Some woven is shirts
From the basic diagram, some woven is shirts. Hence conclusion I follows.
II. Some cloth is woven
From the basic diagram, some cloth is woven. Hence conclusion II follows.
III. All cloth is shirts
From the basic diagram, all cloth is not shirts. Hence conclusion III do not follow.
$$\therefore\ $$Only conclusion I and II follow the given statements
Hence, the correct answer is Option C
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