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We are told towns A, C, and B lie on a straight line. However, we don't know if C is equidistant to A and B -- Could be closer to A than B or vice versa. Lets take a look at the statements

(1) Train S arrives at town C before train T. Perhaps town C is closer to town B? This statement is insufficient to answer the question.

(2) C is closer to A than to B. This statement does not tell us anything about the speeds of the train. Insufficient.

(1 & 2) If we know that town C is closer to A AND train S arrives at town C before train T, this MUST mean train S is faster than train T. Sufficient.
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