Critical Reasoning — Implicit Assumptions Statement: The present examination system needs overhauling thoroughly. Assumptions: I. The present examination system is obsolete or inadequate. II. Overhauling will result in improvement.

Introduction / Context:
Calling for a thorough overhaul of an examination system implies judgments about its current state and about the efficacy of overhauling. We must surface those necessary judgments (assumptions).

Given Data / Assumptions:

• A recommendation: “needs overhauling thoroughly.”
• Assumption I: the current system is obsolete/inadequate.
• Assumption II: overhauling is expected to improve matters.

Concept / Approach:
Recommendations presuppose two things: (a) the status quo is unsatisfactory, and (b) the proposed remedy is beneficial. Without both, the recommendation lacks rationale.

Step-by-Step Solution:

Verification / Alternative check:
Negate I: the system is fine — recommendation collapses. Negate II: overhaul will not improve — recommendation is irrational. The necessity test confirms both are assumptions.

Why Other Options Are Wrong:

• Only I or only II: misses half the rationale behind a policy recommendation.
• Either/Neither: fail the negation test of necessity.

Common Pitfalls:
Interpreting “obsolete” narrowly as “old.” The core is inadequacy for current needs; “overhauling” targets functional improvement, which is the assumed benefit.

Final Answer:
Both I and II are implicit