The passage explains that the continued use of acidic wood-pulp paper affects libraries directly because it shortens the lifespan of their collections, forcing them to spend more on conservation and potentially reduce acquisitions.
It also affects the general public, as deterioration of books threatens the preservation of the “knowledge base of society,” limiting access to information for everyone.
The publishing industry is impacted economically, since libraries — a major buyer of books — will have to divert funds from new purchases to preservation costs, thereby reducing demand for new books.
However, the passage does not discuss governments being directly harmed by the continued use of wood-pulp paper, except in the sense of general cultural loss; there is no mention of a direct operational or budgetary impact on governments.
Therefore, the groups affected, as explicitly described, are I (Libraries), II (General public), and III (Publishing industry).