The correct answer is: Only assumption II is implicit.
The statement says that indiscipline in our industries can be contained and a quality of life ensured to the worker through participative management policy alone. This does not mean that quality of life in our industries is better. It only means that participative management policy can help to improve quality of life.
The statement also says that indiscipline results in poor quality of life. This is an implicit assumption, because the statement does not explicitly say this. However, it is reasonable to assume that if indiscipline is not contained, it will lead to poor quality of life.
Therefore, only assumption II is implicit.