Directions: Select the option that fills in the blanks most suitably (in the same order).

If every perception is a case of knowledge, then evidently there are no _____, and where there is an empirical _____, say between Jones who finds the wind chilly and Smith who finds it warm, both must in a sense be right.

The first operative word in this sentence is 'then', which provides an explanation to what precedes it. Of all these options, (3) and (1) fits our prediction. 'Apparition' means anything that appears unexpected or in an extraordinary way esp. a strange figure appearing suddenly and thought to be a ghost, whereas illusions that means a false idea or misconception would fit our prediction better and hence replaces the first blank. The second operative word is 'say', that provides an example to the clause that precedes it. As the example is contrasting, hence 'disagreement' replaces the second blank. Hence, (3) is the answer.