The correct answer is: Only assumption II is implicit.
The statement “Greater public participation results in good civic governance” does not imply that the municipal office is not competent to effect good civic administration. It is possible that the municipal office is competent, but that it is unable to achieve good civic governance without the participation of the people.
The statement does, however, imply that good civic governance is a matter of collective will and effort of the people and administration. This is because the statement says that “greater public participation results in good civic governance.” This means that the people must participate in order for there to be good civic governance.
Therefore, only assumption II is implicit in the statement.