Statements: Some coffee is tea. All tea is water. All water is milk. Conclusion I: All coffee being water is a possibility. Conclusion II: All milk is tea.

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Step 1: Translate statements into set relations.

- "Some coffee is tea" means $Coffee\cap Tea
eq\emptyset$.
- "All tea is water" and "All water is milk" give $Tea\subseteq Water\subseteq Milk$.

Step 2: Evaluate Conclusion I — "All coffee being water is a possibility."

- Because $Tea\subseteq Water$ and $Coffee\cap Tea
eq\emptyset$, some coffee is already in $Water$.
- There is no statement that any part of $Coffee$ lies outside $Water$, so it is logically possible (not contradicted by the premises) that $Coffee\subseteq Water$.
- Therefore Conclusion I follows (is possible).

Step 3: Evaluate Conclusion II — "All milk is tea."

- From $Tea\subseteq Water\subseteq Milk$ we know $Milk$ is a superset that may contain elements outside $Tea$.
- Nothing in the premises forces $Milk\subseteq Tea$, so "All milk is tea" does not follow.

Conclusion: Only Conclusion I follows, so the correct option is (5) — option e.

FINAL_ANSWER: e

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