The correct answer is: A. Only assumption I is implicit.
The statement “It has become a necessity to computerize all the functions of our Institute to maintain the present position” implies that the Institute is currently not computerized, and that if it does not computerize, it will fall behind the competition. However, the statement does not say anything about the complexity of the Institute’s functions. It is possible that the Institute’s functions are already too complex to be handled manually, but it is also possible that they are not. Therefore, assumption II is not implicit.
Assumption I, on the other hand, is implicit in the statement. The statement says that the Institute needs to computerize in order to maintain its present position. This implies that if the Institute does not computerize, it will fall behind the competition. Therefore, assumption I is implicit.