Read the given statements and conclusions carefully. Assuming that the information given in the statements is true, even if it appears to be at variance with commonly known facts, decide which of the given conclusion(s) logically follow(s) from the statements.
Statements:
1. All terraces are lawns.
2. All lawns are grounds.
3. No ground is a field.
Conclusions:
I. No terrace is a field.
II. Some grounds are terraces.

​Statements:
1. All terraces are lawns.
2. All lawns are grounds.
3. No ground is a field.

​Conclusions:

I. No terrace is a field. (True, there is no direct or indirect relation between terrace and field).
II. Some grounds are terraces. (True, all terrace are lawns and all lawns are grounds, so that means some grounds are terraces).

So, ​Both conclusions I and II follows.

Thus, correct option is (b).