Statement — The government has appealed to all citizens to pay income tax honestly and to file returns reflecting true income levels so that development activities can be carried out.\n\nAssumptions —\nI. People may respond to the appeal and start paying more taxes honestly.\nII. Total income tax collections may increase considerably in the near future as a result of better compliance.

Introduction / Context:
A public appeal is a behavioral intervention aimed at improving compliance. The rationale relies on two links: that some citizens will indeed change behavior after the appeal, and that improved compliance translates into higher aggregate revenue to fund development. If either link fails, the appeal would not serve its stated purpose.

Given Data / Assumptions:

• Appeal: pay honestly and file true returns.
• Goal: enable development by raising adequate revenue.
• I: at least some taxpayers will respond positively.
• II: the response will lift total collections materially.

Concept / Approach:
In statement–assumption terms, we look for minimal beliefs required for sense making. The authority must believe that appeals can move behavior (I) and that such movement changes fiscal totals (II). Both are needed for the appeal to be a rational instrument in this context.

Step-by-Step Solution:

Verification / Alternative check:
Even partial compliance from a subset can raise totals enough to matter, satisfying both assumptions without requiring universal perfection.

Why Other Options Are Wrong:

Common Pitfalls:
Demanding certainty; assumptions here are about plausible responsiveness and fiscal effect, not guarantees.

Final Answer:
Both Assumption I and II are implicit.