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Solutions
The correct answer is option 1 i.e Only conclusions II and III follow.
The least possible Venn Diagram for the given statements is drawn below:

Conclusions:
I. Some jugs are pens: False (All jugs are bottles and no bottle is a pen, which implies No jug is a Pen).
II. No jug is pen: True (All jugs are bottles and no bottle is a pen, which implies No jug is a Pen).
III. Some bottles are jugs: True (As, All jugs are part of bottles, so some bottles are jugs is true).
Hence, the correct answer is Only conclusions II and III follow.