This could be false. This is too broad. The stimulus only discusses the actions of one company; we don’t know enough to say whether the new law was a failure overall. Further, in this case, the law actually did encourage the company to reforest a large tract of cleared land.

This could be false. Even in the example with the company, we can see that the law had an effect on the amount of forested land in the region (a net loss).

This could be false. Since we only know about the actions of one company, we can’t make any definitive claims about what the ultimate result of the new law will be.

This must be true. The law encouraged the company to act in a way that resulted in a net loss of forested area, even though the intent of the law was to increase the amount of forested land.

This could be false. Similar to (C), since we only have the description of the actions of one company, we can’t make any claims about what the overall results of the law will be.