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GMAT Critical Reasoning (CR) | Re: All of John's friends say they know

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Hi Expert,
The argument does not have anything related to lying or telling the truth,also it is quite possible that all of the fiends know a single person who smokes 40 cigs...
The choices preosented in the question and the argument prosented are not coherent,The official answer provided is E but after evaluation of the argument and the choice C seems to be an answer if any.

Requesting support on understanding whats required here.

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