The correct answer is: Only conclusion II follows.
The statement says that the eligibility for admission to the course is a minimum second class Master’s degree. However, it also says that candidates who have appeared for the final year examination of Master’s degree can also apply. This means that some candidates who are not yet qualified to receive their Master’s degree may be admitted to the course. However, it does not mean that all candidates who have yet to get their Master’s degree will be admitted. In fact, it is possible that none of the candidates who have yet to get their Master’s degree will be admitted, if they do not perform well enough in the final year examination.
Conclusion I states that all candidates who have yet to get their Master’s degree will be there in the list of selected candidates. This conclusion is not necessarily true, as explained above. Therefore, conclusion I does not follow.
Conclusion II states that all candidates having obtained second class Master’s degree will be there in the list of selected candidates. This conclusion is true, as all candidates who have obtained a second class Master’s degree are eligible for admission to the course. Therefore, conclusion II follows.