Correct Answer: Neither conclusion I nor II follows

Solution : The possible Venn diagram, according to the given statements is as follows –

Let's analyse the conclusions –
Conclusion (I): All lays are chips – From the Venn diagram, it is evident that some parts of the circle representing lays lie inside the circle representing chips while some lie outside. Thus, this conclusion does not follow.
Conclusion (II): All chips are snacks – From the Venn diagram, it is evident that there is no definite relation between chips and snacks. Thus, this conclusion does not follow.

So, neither conclusion I nor II follows. Hence, the third option is correct.