Step 1: Understanding the question.
The statement talks about how passenger fares have been increased to meet a budgetary deficit. We need to decide which of the assumptions are implicit in this statement.
Step 2: Analyzing the assumptions.
- Assumption I: "Passenger fares were low." This assumption is not explicitly mentioned in the statement. The statement focuses on the increase in fares, but it doesn't confirm that they were low.
- Assumption II: "If the fare is not increased the deficit cannot be met." This is implied by the statement. The increase in fares suggests that this is a measure taken to address the budgetary deficit, which implies that the deficit cannot be met without this increase.
Step 3: Conclusion.
The correct answer is (G) Only II is implicit, as Assumption II is directly implied by the statement.