Statement:\nIn India, a large portion of the 3 million mobile phones sold so far have been purchased from the grey market.\nConclusions:\nI. There are at least 3 million mobile phone subscribers in India.\nII. Grey-market products are tax-free.

Introduction / Context:
The statement quantifies handset sales and notes that many were bought in the grey market. It does not equate handsets to subscribers, nor define tax treatment of grey-market goods.

Given Data / Assumptions:

• 3 million phones sold “till date.”
• A large share of those sales occurred via the grey market.
• No information on unique users, replacements, or multi-SIM behavior.
• No statement about tax policy on grey-market sales.

Concept / Approach:
Sales count is not the same as subscriber count. One person can buy multiple devices, and some devices replace old ones. Likewise, “grey market” concerns supply channels and compliance, not an inherent tax-free status across the board.

Step-by-Step Solution:
1) I: From “3 million phones sold,” it does not logically follow that there are ≥3 million subscribers; devices and subscribers are not in 1:1 correspondence → I does not follow.2) II: The statement never claims that grey-market goods are tax-free; the term typically denotes unofficial or unauthorized channels, but tax treatment may vary and is not asserted → II does not follow.

Verification / Alternative check:
Only an explicit mapping from devices to subscribers, or an explicit tax claim, would make I/II follow. These are absent.

Why Other Options Are Wrong:
Options accepting I or II add unstated assumptions; “Either” still presumes at least one must be true based solely on the statement, which is not the case.

Common Pitfalls:
Equating device sales with user base; assuming “grey market” means “tax-free” by definition.

Final Answer:
if neither I nor II follows