Rearrange the parts of the sentence in correct order to form a meaningful statement: It is a good sign P that the ratio remains the same despite Q the revenue base coming down because R of increased devolution to States.

Introduction / Context:
This question is a sentence rearrangement problem involving three labelled segments P, Q, and R that follow an introductory clause. The sentence discusses a ratio and a revenue base in the context of increased devolution to States. Your job is to choose the correct order of the segments so that they form a grammatically correct and logically coherent statement. Such questions test your understanding of how clauses and phrases are sequenced in English to form complex sentences.

Given Data / Assumptions:

• The fixed starting phrase is: It is a good sign.
• Segment P is: that the ratio remains the same despite.
• Segment Q is: the revenue base coming down because.
• Segment R is: of increased devolution to States.
• We must decide the correct sequence of P, Q, and R after the introductory clause.
• The intended meaning is that there is a good sign even though the revenue base has fallen due to higher devolution to States.

Concept / Approach:
In complex sentences, clauses are often linked by conjunctions such as that and because and by prepositional phrases such as of increased devolution to States. Here, that introduces a clause explaining what the good sign is, and despite introduces a contrast, which must be followed by a noun phrase or a gerund phrase. Because introduces a reason, which must be followed by a phrase that explains the cause. Therefore, we must arrange P, Q, and R so that these linking words appear in grammatically correct positions, and the entire sentence reads smoothly.

Step-by-Step Solution:
Step 1: Attach segment P to the introductory clause. It is a good sign that the ratio remains the same despite forms a natural and grammatically correct structure, where that introduces a clause and despite signals an upcoming contrast. Step 2: After despite, we expect a phrase that describes what is happening in spite of which condition. Segment Q, the revenue base coming down because, starts with a noun phrase the revenue base coming down, which is appropriate after despite. Step 3: Segment Q ends with because, which should be followed by a phrase expressing the cause of the revenue base coming down. Segment R, of increased devolution to States, provides that cause and fits well after because. Step 4: Joining P, Q, and R in the order P Q R after the fixed start, we get: It is a good sign that the ratio remains the same despite the revenue base coming down because of increased devolution to States. This is a clear and grammatically correct sentence. Step 5: Check alternatives such as PRQ or QRP. For example, PRQ would produce despite of increased devolution to States the revenue base coming down because, which is not grammatically acceptable. Step 6: Therefore, the correct order of segments is P Q R, and the right answer is PQR.

Verification / Alternative Check:
Read the complete sentence aloud: It is a good sign that the ratio remains the same despite the revenue base coming down because of increased devolution to States. The structure is logically sound: the clause that the ratio remains the same describes the good sign, and the phrase despite the revenue base coming down because of increased devolution to States explains the challenging background condition. The prepositions and conjunctions that, despite, because, and of are all correctly placed. Trying other permutations quickly reveals grammatical breaks or awkward phrases, confirming that PQR is the only sequence that works.

Why Other Options Are Wrong:
Option a, QRP, begins directly with the revenue base coming down because, which leaves the that clause incomplete and misplaces the contrast introduced by despite.
Option b, RPQ, starts with of increased devolution to States in a position where a that clause is expected, leading to an ungrammatical structure.
Option c, PRQ, joins despite directly with of increased devolution to States and then ends with because, resulting in an incomplete reason clause.

Common Pitfalls:
Learners sometimes ignore connectors like despite and because and simply try to join segments based on surface meaning. This can lead to choices such as PRQ because of increased devolution seems naturally related to the revenue base coming down. However, without checking grammatical connectors and positions, such combinations become ungrammatical. To avoid such mistakes, always identify which segment must follow a conjunction or preposition, and ensure that phrases after because and despite form complete and meaningful units.

Final Answer:
The order that forms a correct and meaningful sentence is PQR, so option d is correct.