The correct answer is: E. Both I and II are implicit.
The statement “The new education policy envisages major modifications in the education system” implies that the present education system is not meeting the needs of the country. This is because if the present education system was meeting the needs of the country, there would be no need for major modifications. Therefore, assumption I is implicit.
The statement also implies that the present education system needs to be changed. This is because if the present education system did not need to be changed, there would be no need for major modifications. Therefore, assumption II is implicit.
Therefore, both assumptions I and II are implicit in the statement.