Directions: In the following question, a statement is followed by two assumptions I and II. You are to consider each statement and assumption that follows and decide which of the assumption(s) is/are implicit in the statement. Give answer (1) if only I is implicit; (2) if only II is implicit; (3) if both I and II are implicit; (4) if neither I nor II is implicit.

Statement: The Railway authorities have decided to increase the freight charges by 10 per cent, in view of the possibility of incurring losses in the current financial year. Assumptions: I. The volume of freight during the remaining period may remain the same. II. The amount so obtained may set off a part or total of the estimated deficit.