Directions : In each of the following questions a statement is given, followed by two conclusions. Give answer : Statements : Domestic demand has been increasing faster than the production of indigenous crude oil. Conclusions : I. Crude oil must be imported. II. Domestic demand should be reduced.

The correct answer is: C. Either I or II follows.

The statement says that domestic demand has been increasing faster than the production of indigenous crude oil. This means that the country is consuming more crude oil than it is producing. There are two possible ways to address this situation:

1. The country can import more crude oil.
2. The country can reduce its domestic demand for crude oil.

Conclusion I states that crude oil must be imported. This is a possible solution to the problem, but it is not the only solution. Conclusion II states that domestic demand should be reduced. This is also a possible solution to the problem.

Therefore, either conclusion I or conclusion II follows from the statement.