The correct answer is: Only assumption II is implicit.
The district administration has issued a circular to all the farmers under its jurisdiction advising them for not using pesticides indiscriminately as it may pollute the ground water. This means that the district administration is concerned about the pollution of ground water due to the indiscriminate use of pesticides by farmers.
Assumption I: People may stop using ground water if the farmers continue to use pesticides indiscriminately.
This assumption is not implicit in the statement. The statement only says that the district administration is concerned about the pollution of ground water due to the indiscriminate use of pesticides by farmers. It does not say that people will stop using ground water if the farmers continue to use pesticides indiscriminately.
Assumption II: Farmers may refrain from using pesticides indiscriminately.
This assumption is implicit in the statement. The statement says that the district administration has issued a circular to all the farmers under its jurisdiction advising them for not using pesticides indiscriminately as it may pollute the ground water. This means that the district administration is trying to persuade the farmers to refrain from using pesticides indiscriminately.
Therefore, only assumption II is implicit in the statement.