The correct answer is: C. Either I or II is implicit
The statement is: “The President assured the people that elections will be held here after every five years.”
Assumption I is: “People are afraid that the elections may not be held at all.”
Assumption II is: “People are afraid that the elections may not be held after five years.”
Neither assumption is necessarily true. It is possible that the President made the assurance because he or she believes that elections are important and should be held regularly, regardless of whether or not people are afraid that they will not be held. However, it is also possible that the President made the assurance because he or she believes that people are afraid that the elections may not be held, and that making the assurance will help to reassure them.
Therefore, either assumption I or assumption II is implicit in the statement.