A soccer team played 25% more matches year-on-year in the second year

Hi,

I can't believe that nobody here is a fan of the world's most popular game. A soccer game can have three results- win, lose or draw. We will analyse each statement in the question one by one and we will fill this table as we go.
Y MMM WWW LL D
1
2
3
Y- Year, MMM- Matches Played, WWW- Won, LL- Lost, D- Draw

Statement 1: A soccer team played 25% more matches year-on-year in the second year of its formation.
Lets say the number of matches played by the team in the first year is 100, then the table looks something like this-
Y MMM WWW LL D
1 100
2 125
3

Statement 2: It won 84% of the matches it played in the second year.
So, 84% of 125= 105. The state of the table now is-
Y MMM WWW LL D
1 100
2 125 105
3

Statement 3: ....which was an improvement of 5% over the percentage of matches won in the first year.
So, if 84% was an improvement of 5%(mind you, its percentage not percentage points and there is a difference between both) then if the team won x% of matches in the first year then, 105% of x= 84, which gives us x= 80. Now we know that team won 80% of matches in the first year. The table now looks like this:
Y MMM WWW LL D
1 100 80
2 125 105
3

Statement 3:In the third year, the team played 4% fewer matches year-on-year
4% fewer matches is equivalent to saying 96% of 125= 120. The table:
Y MMM WWW LL D
1 100 80
2 125 105
3 120

Statement 4: ...but lost only 12.5% of the matches it played,
12.5% of 120= 15. We know how many they lost but that doesn't mean that they won all the remaining matches; we actually don't know how many matches they won. The table now:
Y MMM WWW LL D
1 100 80
2 125 105
3 120 NA 15

Statement 4: ....which was one less than the number of matches lost by the team in the second year.
So number of matches lost by the team in the second year is 15+1 i.e., 16. The table's situation now is as follows:
Y MMM WWW LL D
1 100 80
2 125 105 16
3 120 NA 15

We see that in the year 2, total matches= won+lost+draw, hence, draw= 125-(105+16)= 4. Finally, the table becomes:
Y MMM WWW LL D
1 100 80
2 125 105 16 4
3 120 NA 15

Lets judge the validity of the conclusions provided in the question now, also, keep in mind that its a 'must be true' question.
I. The team lost the same number of matches in the first year and the second year---We do not have enough data to answer this so its not necessarily true. Hence, False.
II. The team won the same number of matches in the second year and the third year--- Again, we do not have enough data to answer this so its not necessarily true. Hence, False.
III. The team played five more matches in the third year than the first year--- We can see from the table that its not true. Hence, False.

Therefore, we cannot definitely conclude any of the statements to be true. So , the answer IMO is E.

Hope it makes things clear.