Statement: The two countries have signed a fragile pact, but the vital sovereignty issue remains unresolved.
Assumptions:
1. The two countries cannot have permanent peace pact.
2. The two countries may become hostile again after a short spell of time
Answer: B
From the fact that the present pact is not a lasting one, the possibility of a permanent pact cannot be ruled out. So, I is not implicit. The statement mentions that the present pact is a 'fragile' one and the vital sovereignty issue still remains unresolved. So the same issue may rise again in the future. Thus, II is implicit.