Q. Statement I The set of letters needed to spell 'CATARACT' and the set of letters needed to spell 'TRACT' are equal.
Statement II All the subsets of the set are and

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Solution:

Let be the set of letters in word 'CATARACT'. Then,

Let be the set of letters in word 'TRACT'. Then,

Since, every element in is in and every element in is in . It follows that .
Hence, Statement I is true.
Let . The subset of having no element is the empty set . The subsets of having one element are , and . The subsets of having two elements are and . The subset of having three elements of is itself. So, all the subsets of are , and .
Hence, Statement II is false.