Statement: “The government reduced fuel prices to control inflation.” Conclusions: I. Inflation was rising. II. Fuel prices affect inflation.​​

Explanation

Statement: “The government reduced fuel prices to control inflation.” Conclusions: I. Inflation was rising. Yes. If the government is taking steps to control inflation, it clearly implies inflation was already present or increasing. II. Fuel prices affect inflation.​​ Yes. Reducing fuel prices as a measure to control inflation shows that fuel prices have an impact on inflation. So, Both follows. Thus, correct option is (c).