Correct option is C
Statements:
Some ships are cups.
No cup is a stool.
All windows are cups.

Conclusions:
I. Some ships being windows is a possibility. - True - there are not any negative relation is given between them so any definite possibility will always be true.
II. No window is a stool. - True - clearly given no cups are stools and all windows are restricted with cup.
III. All cups are windows.- False - whole area of cups is not inside of windows.
IV. No ship is a stool.- False- there is no direct relation is given between them- so any definite relation between them will not true.
Only Conclusions I and II follow