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Statement and Assumption - Verbal and Reasoning

Directions to SolveIn each question below is given a statement followed by three assumptions numbered I, II and III. You have to consider the statement and the following assumptions, decide which of the assumptions is implicit in the statement and choose your answer accordingly.
Q1:

Statement: Tender specification will not be issued to the firms where there is 25% or more default in supplies against earlier purchase orders placed on them' - Condition of a Company X inviting tenders for the purchase of material. Assumptions:
  1. The Company X will be watching the quality of performance of its suppliers.
  2. This time the firms should keep the percentage of default as less as possible.
  3. The Company X expects quality and professional approach from its suppliers.

A Only I is implicit

B Only II is implicit

C Either II or III is implicit

D Only III is implicit

E None of these

ANS:E - None of these

Explanation: Since Company X intends to invite tenders only from those companies which have not been defaulters earlier, so both I and III are implicit. Besides, to have long term business relations with Company X, every firm needs to perform well in its supplies. So, II is also implicit.