A statement is given followed by two inferences I and II. You have to consider the statement to be true even if it seems to be at variance from commonly known facts. You have to decide which of the given inferences, if any, follow from the given statement. Statement: South Africa’s Cape Town could run out of water by April as the city’s worst drought in a century might be forcing residents to join queues for emergency rations. Inferences: I: People will avoid settling in Cape Town in the coming years. II: People living in Cape Town might consider moving out of there. Correct Answer Both inferences I and II follow Cape Town will soon run out of water. Water is an essential commodity needed for survival. If it is unavailable in place, people living there would move out and any other person wouldn’t want to settle there. So both the statements hold true.