Attached. Couldnt really understand it

I'm with B. 1min15.
A) does nothing to explain the discrepancy b/w governement grant vs government funding
B) This gives a possible explanation. If grant amounts increased but funding was decreased, and both are mutually exclusive, this could explain how the former could have increased while the latter decreased.
C) same as A
D) out of scope
E) This does not necessarily mean that defense contractors transfered amount in terms of $ has increased. It only says that the proportion increased. What if they used to subcontract 50M out of 500M (10% of their business value) but now subcontract 50M out of 250M (20% of their business value)?

B.

Statement I :
Government grants have risen over the past 10 years

II:
Government funding of scientific research is low compare to ten years ago.

Only B provides reason for both the statements

Yes OA is B.
First of all, I could not understand statement I and II . Now, first says that government grant to universities " for scientific research" has increased. Second says that government funding for scientific research has decreased. Now, isnt "government grant to universities for scientific research" the same thing as "government funding for scientific research".
What am i missing here?
I construed that government funds to universities increased but within universities, investing for scientific research decreased and one reason could be increased salaries for technicians as explained by answer choice D.
I think Iam getting confused here because of wording.. ????????

crackgmat, please note that grants is only a PART of the funding

So, if grants have increased but the whole funding has decreased then it must be that SOME OTHER PART of funding has decreased substantially

B gives as that part - government contracts

1.5 Mins
B for sure
grants and funding are mutually exclusive

I was awake the whole of last night and I am sure the this has shown in my answering this CR. Totally out of my mind. Pls allow me guys....

Yes, it happens to me too when I stay up too late trying to answer CR questions... I'm not all there.