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Most serious students(SS) are happy students(HS), and most serious students go to graduate school(GS). Furthermore, all students who go to graduate school are overworked.

If we are taking ALL as 100 (just for base reference!)
MOST -- more than half (51-100)
ALL -- 100
SOME -- Atleast ONE (1-100)
NOT ALL -- 0-99


Now, coming to the question,

I have abbreviated some of the terms or names you can say, for easy understanding.

MOST SS --> HS
MOST SS --> GS
ALL GS students --> Overworked

Which one of the following can be properly inferred from the statements above?
As this is an INFERENCE question, it MUST BE TRUE or we can say MOST STRONGLY SUPPORTED FROM THE above facts.

1) Most overworked students are happy students.
Cannot be inferred. Cannot say that from the facts in hand.

2) Some happy students are overworked
By POE. It remains.

3) All overworked students are serious students
Cannot be inferred. Cannot say that from the facts in hand.

4) Some unhappy students go to graduate school
The facts are talking about the happy students, there is no information about the unhappy students.

5) All serious students are overworked
If we replace "All" with "Most" than it would be correct. For "all" we cannot infer.
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>50% of serious students are happy student (group 1)
>50% of serious students are going to graduate school (group 2)
----> at this point these ">50%" does not necessarily comprise of the same individual students, but since both of them are more than half, "SOME" students will be in both groups i.e. some individual in group 1 will also be in group 2

All students who go to graduate school are overworked.
-----> it means all from group 2 are overworked. Since we know that some students from group 1 will also be in group 2, it can be inferred that "Some happy students are overworked"
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Most serious students are happy students, and most serious students go to graduate school. Furthermore, all students who go to graduate school are overworked.

Which one of the following can be properly inferred from the statements above?

Overlapping sets problem. Sets are Serious Students(SS), happy students(HS), graduate school(GS(representing all students)) and overworked(O).
Flow is as follows:
most SS ---> HS, most SS ---> GS, all GS ---> O
Note that reverse may or may not be true in all the above scenarios.

1) Most overworked students are happy students. - WRONG. Not all students in GS are happy students.
2) Some happy students are overworked - CORRECT. Yes, a possibility.
3) All overworked students are serious students - WRONG. Not serious also make it to GS.
4) Some unhappy students go to graduate school - WRONG. Not sure since uphappy students segment is not known.
5) All serious students are overworked - WRONG. - What about minority segment of the SS who don't make it to GS.

Answer B.
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Most serious --> Happy students
Most serious --> Graduate school

Therefore, Happy students --> Graduate School.

Now the last line, All students who go to graduate school are overworked.
Can be written as, If Graduate school --> Overworked.

Combine : Happy students --> Graduate School --> Overworked.

Thus B makes sense.
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