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In the question a statement is followed by some courses of action . A course of action is a step or administrative decisions to be taken for improvement, follow-up, or further action in regard to the problem, policy, etc.You have to assume everything in the statement to be true and then decide which of the given suggested course(s) of action logically follows for pursuing.
Statement:
Due to substantial reduction in fares by different airlines services large number of passengers, so far travelling by upper classes in trains, have switched over to airline services. Courses of action:
I. The railways should immediately reduce the fare structure of the upper classes substantially to retain its passengers.
II. The railways should reduce the capacity of upper classes in all the trains to avoid loss.

Only course of action I follows.
Only course of action II follows.
Either course of action I or II follows.
Neither course of action I nor II follows.
Both courses of action follows.
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