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:
All bags are pens
All pencils are pens
Conclusions:
I. Some pens are bags.
II. All bags are pencils.
III. Some pens are pencils.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. Both conclusions I and III follow.
The least possible Venn Diagram for the given statements is drawn below:

Conclusions:
I. Some pens are bags → True (As all bags are pens, so, some pens are bags is also true.)
II. All bags are pencils → False (It is possible, but no definite conclusion can be drawn.)
III. Some pens are pencils → True (As all pencils are pens, so, some pens are pencils is also true.)
Hence, Both conclusions I and III follow.