The correct answer choice that categorizes the mood of the verb in each sentence is:
B.
Interrogative: II and III
Indicative: I and IV
Explanation:
- Sentence I ("Some economic enterprises have been permitted to operate with greater freedom from state control.") is indicative because it states a fact.
- Sentence II ("Are these the beginnings of profound changes in the Soviet state?") is interrogative because it asks a question.
- Sentence III ("Or are they token gestures, intended to raise false hopes in the West, or to strengthen the Soviet system without changing it?") is also interrogative as it poses a question.
- Sentence IV ("We welcome change and openness; for we believe that freedom and security go together, that the advance of human liberty can only strengthen the cause of world peace.") is indicative, as it presents assertions about beliefs and views.
So the moods are categorized as B: Interrogative for II and III, and Indicative for I and IV.