In this question, a statement is followed by two courses of action, numbered I and II. You must assume everything in the statement to be true and on the basis of the information given in the statement, decide which of the course of action/s logically follows for pursuing.

Statement: Many people have complained to the Finance Ministry regarding a delay in receiving refunds of their Income Tax returns.

Courses of action:

The Finance Ministry must institute an enquiry into the complaints received regarding delay in income tax refunds.

The Finance Ministry must compensate the income tax payees by paying interest on their refunds for the duration of the delay.

Given:

Statement: Many people have complained to the Finance Ministry regarding a delay in receiving refunds of their Income Tax returns.

Course of Action:

I. The Finance Ministry must institute an enquiry into the complaints received regarding delay in income tax refunds. - True (Because, This is a necessary step to identify the root causes of the delay and implement corrective measures.)

II. The Finance Ministry must compensate the income tax payees by paying interest on their refunds for the duration of the delay. - True (Because, This provides immediate relief to affected taxpayers and acts as a deterrent against future delays.)

So, Both I and II follow.

Hence, the correct answer is "Option 3".