Statement: The government will hike royalty on crude oil and grant exemption in excise duty to North-East petroleum production. Conclusions : I. There will be an additional burden on the national exchequer. II. There is intense competition for petroleum production in the North-East.

if only conclusion I follows
if only conclusion II follows
if either I or II follows
if neither I nor II follows, and

Correct Answer: if only conclusion I follows

Explanation:

Exemption in excise duty will have negative effect on national exchequer. Hence I follows. II is an inference to the contrary.

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