Two statements are given followed by Three conclusions numbered I, II and III. Assuming the statements to be true, even if they seem to be at variance with commonly known facts, decide which of the conclusions logically follow(s) from the statements.

Statements:

All bags are pens

All pencils are pens

Conclusions:

I. Some pens are bags.

II. All bags are pencils.

III. Some pens are pencils

Both conclusions I and III follow.