The correct answer is: Only I and III follow.
The first statement is “All players are spectators.” This means that every player is also a spectator. The second statement is “Some spectators are theatres.” This means that there are some spectators who are also theatres. The third statement is “Some theatres are dramas.” This means that there are some theatres that are also dramas.
The first conclusion is “Some dramas are spectators.” This conclusion follows from the first statement and the second statement. The second conclusion is “Some players are dramas.” This conclusion does not follow from the statements. The third conclusion is “Some theatres are players.” This conclusion does not follow from the statements. The fourth conclusion is “All spectators are players.” This conclusion does not follow from the statements.
Here is a diagram that shows the relationships between the different groups of people:
[Diagram of a Venn diagram with three circles labeled “players,” “spectators,” and “dramas. The players circle is completely inside the spectators circle, and the spectators circle overlaps with the dramas circle.]
The diagram shows that all players are spectators, and that some spectators are also dramas. However, it does not show that all spectators are players, or that all dramas are players.