In the question a statement is given, followed by two arguments, I and II. You have to consider the statement to be true even if it seems to be at variance from commonly known facts. You have to decide which of the given arguments, if any, is a strong argument. 
Statement : Should local train tickets be subsidized? 
Argument I : No, In an environment where locals trains are overcrowded, subsidy will worsen the situation. 
Argument II : Yes, Local trains reduce number of vehicles on the road, thus reducing pollution, reduce costs and travel time.