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1st container capacity = x + 4
2nd container capacity = x + 2
3rd container capacity = x

It's possible to have 4 gallons if the 3rd container contains 0 gallons of water i.e. if x = 0 and if each of the other containers have 2 gallons of water or if all the water was in the 1st container.

If you fill up 1st conatiner completely and then pour it into third container, filling it completely, you will have 4 gallons left in first container...........reminds me of Bruce Willis n Sam Jackson in Diehard movie, doing the same thing

Even if we assume that the smallest container contains 0.0001 gallon
we can still measure exactly 4 gallons.
S = 0.0001
M = S+2 = 2.0001
B = M+2 = 4.0001 gallons

1. First fill the container M completely.
2. The pour water from this container to the smallest container
Here you have exactly 2 gallons left in the M container.
3. Now pour this water onto container B. It now contains 2 gallons
4. Now pour back the water from S to M. Now M contains 0.0001 Gallons
5. Fill the M container with more water. Now M contains 2.0001 gallons
6. Pour water from M to S and now M contains exactly 2 gallons.
7. Now pour water from M to B. Now B contains 4 gallons.

So the answer in ur case is C where u are making use of both the statements.

I am sure my assumptions are not valid in GMAT. But if i could use any of them the answer would be D.

-V

Ans has to be C in my opinion. You need to empty the second container completely to get exactly 4 gallons. If the third container is smaller than both the second container, you cannot empty the second container fully. So you need to have more information than just 1. 2 provides such information although the amount by which 2nd container is larger than the 3rd is unnecessary.