The correct answer is C. Let CP be the Cost Price of the item. Let SP be the current Selling Price of the item. Let P be the current Profit Percentage. The profit percentage is calculated as: $P = \frac{SP - CP}{CP} \times 100$. **Analysing Statement I:** Statement I says: "If the item was sold for Rs. 100 more than its current selling price, the profit percentage would increase by 5 percentage points." From this, we can set up two equations: 1. The current profit percentage: $P = \frac{SP - CP}{CP} \times 100$ 2. The new profit percentage with the increased selling price: $P + 5 = \frac{(SP + 100) - CP}{CP} \times 100$ We have two equations and three unknown variables (CP, SP, and P). We cannot solve for a unique value of CP using Statement I alone. Therefore, Statement I alone is not sufficient. **Analysing Statement II:** Statement II says: "The current profit percentage is 10%." So, $P = 10$. Using the profit percentage formula: $10 = \frac{SP - CP}{CP} \times 100$ Dividing by 100: $0.1 = \frac{SP - CP}{CP}$ Multiplying by CP: $0.1 \times CP = SP - CP$ Rearranging: $SP = CP + 0.1 \times CP \implies SP = 1.1 \times CP$ This statement provides a relationship between SP and CP, but we have two unknown variables (CP and SP) and only one equation. We cannot determine a unique value for CP. Therefore, Statement II alone is not sufficient. **Combining Statement I and Statement II:** From Statement II, we know that $P = 10$. From Statement II, we also derived the relationship: $SP = 1.1 \times CP$ (Equation 3). Now, substitute $P=10$ into the second equation derived from Statement I: $10 + 5 = \frac{(SP + 100) - CP}{CP} \times 100$ $15 = \frac{SP + 100 - CP}{CP} \times 100$ Divide by 100: $0.15 = \frac{SP + 100 - CP}{CP}$ Multiply by CP: $0.15 \times CP = SP + 100 - CP$ Now, substitute $SP = 1.1 \times CP$ (from Equation 3) into this combined equation: $0.15 \times CP = (1.1 \times CP) + 100 - CP$ $0.15 \times CP = (1.1 - 1) \times CP + 100$ $0.15 \times CP = 0.1 \times CP + 100$ Subtract $0.1 \times CP$ from both sides: $0.15 \times CP - 0.1 \times CP = 100$ $0.05 \times CP = 100$ To find CP, divide by 0.05: $CP = \frac{100}{0.05} = \frac{100}{\frac{5}{100}} = \frac{100 \times 100}{5} = \frac{10000}{5} = 2000$ Since we can determine a unique value for CP (Rs. 2000) by combining both statements, both statements together are sufficient. Final Answer is C.