A small needle is carefully floated on water in a beaker. When a few drops of kerosene are introduced into the water, the needle sinks. Which of the following statements correctly explains the observation?

I. There is tension on the water surface II. Kerosene reduces the density of water so that the needle becomes denser than water

III. Kerosene reduces the surface tension of water

A. I only
B. II only
C. III only
D. I and. II
E. I and III  

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Correct Answer: E