The correct answer is: Only assumption II is implicit.
The statement only tells us that no regular funds have been provided for welfare activities in this year’s budget. It does not tell us why no funds have been provided. It is possible that the factory does not desire to carry out welfare this year, but it is also possible that the factory does desire to carry out welfare but does not have the funds to do so. Therefore, assumption I is not implicit.
Assumption II, on the other hand, is implicit. If the factory does not have the funds to carry out welfare activities, then it cannot carry out these activities, regardless of whether or not it desires to do so. Therefore, assumption II is implicit.
To further explain, let’s consider the following example:
Statement: No regular funds have been provided for food in this year’s budget of the school.
Assumption I: The school does not desire to feed the students this year.
Assumption II: Budgetary provision is necessary for feeding the students.
In this case, assumption I is not implicit. It is possible that the school does not desire to feed the students, but it is also possible that the school does desire to feed the students but does not have the funds to do so. For example, the school may have lost a lot of money in the previous year and may not have enough money to cover all of its expenses, including food for the students.
Assumption II, on the other hand, is implicit. If the school does not have the funds to feed the students, then it cannot feed the students, regardless of whether or not it desires to do so. Therefore, assumption II is implicit.