This is a great problem that disguises number properties inside a word problem. The key concept being tested is integer constraints on percentages — the GMAT loves checking whether you recognize that certain percentages force specific divisibility requirements.
Step 1: Define variables
Let g = number of graduate students, u = number of undergraduate students.
We know g = u + 6.
Step 2: Apply the percentage constraints
30% of graduate students are foreign → 0.30 × g must be an integer → g must be a multiple of 10 (since 30% = 3/10).
37.5% of undergraduate students are foreign → 0.375 × u must be an integer → u must be a multiple of 8 (since 37.5% = 3/8).
This is the step most people skip too quickly. They jump straight to plugging numbers without first pinning down the divisibility rules.
Step 3: Find the smallest values satisfying both constraints
We need the smallest g (multiple of 10) and u (multiple of 8) where g = u + 6.
Try u = 8 → g = 14 (not a multiple of 10) ✗
Try u = 16 → g = 22 (not a multiple of 10) ✗
Try u = 24 → g = 30 (multiple of 10) ✓
Step 4: Calculate the foreign students
Foreign grads = 30% × 30 = 9
Foreign undergrads = 37.5% × 24 = 9
Total foreign students = 9 + 9 = 18
Answer: C
Common trap: Students often pick A (12) by trying u = 8 and g = 10 without checking that g = u + 6 must hold simultaneously. Always verify ALL constraints before calculating.
Takeaway: Whenever a GMAT problem gives you percentages that must yield whole numbers of people, immediately convert those percentages to fractions and identify the divisibility requirement — it dramatically narrows your search.