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 seem 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 sofas are chairs
Statement II: Some chairs are lounges
Statement III: All lounges are recliners
Conclusion I: Some chairs are sofas
Conclusion II: Some sofas are lounges
Conclusion III: Some recliners are chairs
The basic diagram for the given statements is
I. Some chairs are sofas
From the basic diagram, some chairs are sofas. Hence conclusion I follows.
II. Some sofas are lounges
From the basic diagram, no sofa is chair. Hence conclusion II do not follow.
III. Some recliners are chairs
From the basic diagram, some recliners are chairs. Hence conclusion III follows.
$$\therefore\ $$Only conclusions I and III follow the given statements
Hence, the correct answer is Option C
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