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Statement: "Despite hike in tariff, power is still cheap in the city X." - Power Minister Assumptions: I. The cost of purchasing electricity or its generation is much more in city X than in the neighbouring states. II. Hike in tariff makes the power costly.

if only assumption I is implicit.
if only assumption II is implicit.
if either I or II is implicit.
if neither I nor II is implicit.

Correct Answer: if only assumption II is implicit.

Explanation:

Assumption I is not implicit because it rather contradicts the statement. But assumption II is implicit; that is why the word "despite" has been used in the statement.

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