The correct answer is: B. Only assumption II is implicit
The statement says that the State Government has abolished the scheme of providing concessional air ticket to students. This does not mean that students will not travel by air in future. It is possible that students will still travel by air, but they will have to bear the full cost of the air ticket. Assumption I is not implicit in the statement.
Assumption II is implicit in the statement. If the State Government has abolished the scheme of providing concessional air ticket to students, it is because it believes that students can afford to pay the full cost of the air ticket.
Therefore, only assumption II is implicit in the statement.