The condition of three terms is satisfied. No alignment is required.
A + A = A, conclusion is ‘All books are papers’. The immediate inference of the conclusion is ‘Some papers are books’. So conclusion I follows.
The immediate inference of second statement is ‘some papers are stones’; that is also conclusion 2. So, option (c) is the answer.
Venn diagram solution:

A + A = A, conclusion is ‘All books are papers’. The immediate inference of the conclusion is ‘Some papers are books’. So conclusion I follows.
The immediate inference of second statement is ‘some papers are stones’; that is also conclusion 2. So, option (c) is the answer.
Venn diagram solution:


