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I will go with E. 1 is assumed. It says that "neither you nor your guests can taste the difference", there is a but " but if you would be embarrassed if it were learned that you were serving a domestic " which means that there are chances that the guests can find the difference, so in that case use a crystal to hide the fact. (to make it look like: if a person uses crystal then may be he can afford the French water from Evian so why doubt)
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I originally went for E but I think C should be it. If it is not, then the question is just badly worded. Venksune said it all, 1 is explicitely stated in the argument. The only way you could be afraid that guests will find out about your using Cold Spring is if you pour it out from the Cold Spring bottle itself; hence the recommendation to use a crystal decanter.
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My Choice is C.

1. cannot be assumed, so A D E are eliminated
2. Cannot assume about the packing so B is eliminated.
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I will vote for E (against the wagon). If you negate E, then you get "It is not difficult to discern between the water", and then the whole basis of the advertisement falls apart.
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Should be E.

1, you can disguise what it actually is, but reality is still open.
3 is evident from the premise
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The OA is E.
The explanation given -
I is an assumtion of the ad: "Neither you nor your guests will taste the difference," and it is explicaitly mentioned. We know it is an assumption because if there were a taste difference , the appeal of the ad would be seriously undermined.
I think that we can better assume I from Bhai's explanation .
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Bhai wrote:
I will go with E. 1 is assumed. It says that "neither you nor your guests can taste the difference", there is a but " but if you would be embarrassed if it were learned that you were serving a domestic " which means that there are chances that the guests can find the difference, so in that case use a crystal to hide the fact. (to make it look like: if a person uses crystal then may be he can afford the French water from Evian so why doubt)

Well, I disagree with Bhai's answer and with the OA. I agree that there is a chance that the guest can find a difference but why did the second half of the sentence suggests the host to change the water bottle to a crystal decanter? Because the only way for them to find out is for them to see the actual container. Otherwise, what would be the point of using a different container to hide the taste? Since the stem already says that you cannot distinguish the water on the basis of taste, I cannot be an assumption; it is an explicit fact taken as true. The question is just badly worded to me.
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Paul, I disagree with you.

The question stem says
Neither you nor your guests will taste the difference , but if you would be embarrassed if it were learned that you were serving a domestic sparkling water, then serve Cold Springs Water - but serve it in a leaded crystal decanter.

The second sentence indicates a possibility that the taste difference might be found out in some cases and to support such cases, the domestic water has to be supplied in a leaded crystal decanter. It really means that I is the underlying assumption contributing to the conclusion without being explicitly stated in the passage.

Paul wrote:
Bhai wrote:
I will go with E. 1 is assumed. It says that "neither you nor your guests can taste the difference", there is a but " but if you would be embarrassed if it were learned that you were serving a domestic " which means that there are chances that the guests can find the difference, so in that case use a crystal to hide the fact. (to make it look like: if a person uses crystal then may be he can afford the French water from Evian so why doubt)

Well, I disagree with Bhai's answer and with the OA. I agree that there is a chance that the guest can find a difference but why did the second half of the sentence suggests the host to change the water bottle to a crystal decanter? Because the only way for them to find out is for them to see the actual container. Otherwise, what would be the point of using a different container to hide the taste? Since the stem already says that you cannot distinguish the water on the basis of taste, I cannot be an assumption; it is an explicit fact taken as true. The question is just badly worded to me.


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