Directions: 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 the commonly known facts. You have to decide which of the given inferences, if any, follow from the given statement?

Statement: Five-star restaurants will have to impose a luxury tax of 28 per cent.

Inferences:

I: Better quality food is provided at five-star restaurants.

II: Five-star restaurants target the rich audience who can afford the luxury tax.

1
Only inference I follows
2
Only inference II follows
3
Both inferences follow
4
None of the inference follows

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