Correct option is C
Given:
Statements:
I. Some paise are rupee.
II. All rupee is money.
III. No money is water.
I. Some paise are rupee.
II. All rupee is money.
III. No money is water.
From the given information Venn diagram will be:

Conclusions:
(1): Some rupee is water (Not follow, There is no any direct relation between rupees and water.
(II): Some money is water (Not follow, There is also no any direct relation between money and water.
(II): Some money is water (Not follow, There is also no any direct relation between money and water.
Thus, the correct option is (c) Neither conclusion (1) nor (II) follows.