Consider the given statements to be true even if they seem to be at variance with the commonly known facts and decide which of the given conclusions logically follow(s) from the statements.
Statements:
1. All dresses are clothes.
2. All clothes are yarns.
Conclusions:
I. All dresses are yarns.
II. Some yarns are clothes.

​Statements:
1. All dresses are clothes.
2. All clothes are yarns.

​Conclusions:
I. All dresses are yarns. (True, if all dresses are clothes, and all clothes are yarns, then by transitive logic).
II. Some yarns are clothes. (True, if all clothes are yarns, then clothes are a subset of yarns).

Thus, correct option is (c).