Statement: No budgetary provision for the purpose of appointing additional faculty would be made in the context of institute's changed financial priorities.
Assumptions:
1. Appointment of faculty requires funds.
2. There are areas other than appointment of faculty which require more financial attention.
Answer: E
The phrase 'budgetary provision for the purpose of appointing additional faculty' makes I implicit. Also, since no budgetary provision was provided for appointment of faculty in view of certain changed financial priorities, it means that some other issues require more financial attention. So, II is also implicit