Read the given statements and conclusions carefully. You have to take the given statements to be true even if they seem to be at variance from commonly known facts. You have to decide which conclusion's logically follow/s from the given statements.
Statements:

(I) Some chairs are fans.

(II) All fans are pots.

(III) Some pots are hot.
Conclusion

I: Some fans are chairs.
II: Some hot are pots.​​

Given:

Statements:

(I) Some chairs are fans.

(II) All fans are pots.

(III) Some pots are hot.

From the above statement following Venn diagram will be - 

Conclusion I: "Some fans are chairs." (True, The conclusion that "Some fans are chairs" logically follows from this because the overlap works both ways. Hence, Conclusion I is valid.)
​Conclusion II: "Some hot are pots." (True,  The word "some" only tells us that there is an overlap, but it does not mean that all hot objects must be pots. Hence, Conclusion II is valid because "Some pots are hot" implies that some hot objects can indeed be pots.)
Thus, the correct answer is (D) Both conclusions (I) and (II) are follow.​​